Explain the differences among the two types of capital small businesses require: fixed and working

11.1 Learning Outcomes:

Explain the differences among the two types of capital small businesses require: fixed and working

Describe the various sources of equity capital available to entrepreneurs, including friends and relatives, crowdsourcing, accelerators, angels, corporations, venture capital, and public stock offerings.

Describe the seven sources of funding that the founders can contribute to their new business.

Describe the types of businesses that attract venture capital financing and explain the criteria that venture capitalists use to decide on their investments.

• Explain the process, the advantages, and challenges of making an initial public offering.
• Describe the various sources of debt capital and the advantages and disadvantages of each.
• Explain the types of financing available from nonbank sources of credit.
• Identify the sources of government financial assistance and the loan programs these agencies offer.
• Describe the various loan programs available from the Small Business Administration.
• Discuss state and local economic development programs.
• Explain how to avoid becoming a victim of a loan scam.
• 11.2 Action Required:
• Watch the short video at the following link:
• https://www.youtube.com/watch?v=IMJVp3tIX9c
• 11.3 Test your Knowledge (Question):

Outline and describe the steps involved in the IPO process.

11.4 Instructions

Answer the question available in the “Test your Knowledge” section.

Post your answer in the discussion board using the discussion link below