Description
· 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.
