Sunday, March 13, 2016

Week 10 Reading Reflection

1. The biggest surprise for me in this reading is how many different ways of funding there are for a company and all the processes to obtain such funding.

2. A part in the chapter I found most confusing is when the author is talking about activities being outsourced whenever possible under the heading of Internal or External Funds. In the previous sentence the author is talking about assets but then refers to activities which is confusing as to what company's activities he's talking about.

3. The two questions I would have for the author are: 1) Why would a business choose debt financing in giving up their personal assets as collateral? 2) Would a business have to be at a certain establishment to ask for a governmental grant?

4. There wasn't anything particular I thought it completely wrong with what the author said, but I might have to slightly disagree with the statement of how banks are hesitant on giving small business loans. I thought banks advocated small business loans so that they can make money off the interest of the loan, since regardless of the business' success, the lion has to be paid back.



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