5.9.9: Discussion Questions

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How do funding requirements differ in each stage of a company’s lifecycle? Why?

What are the advantages and disadvantages of different sources of financing?

How does collateral factor into your financing options?

What challenges do nonprofits face in securing financing?

What are some potential benefits of a crowdfunding campaign aside from the funding itself? What are some potential drawbacks?

What are some of the sacrifices you could see yourself having to make to bootstrap your potential business?

How would you work around having limited access to capital in starting your own business? What difficulties can you see in trying to do so?

Which external parties would be interested in obtaining a firm’s financial statements?

Why would investors require access to financial statements?

10.

How do companies use financial statements in communicating with potential investors?

11.

How can an entrepreneur use preliminary financial information in planning a new business?