Perform the task below. Suppose you have savings in the bank that you want to invest in stocks and bonds instead of setting up in a new business. Write one to two paragraphs discussing what method you can use to make the investment and explain the reasons for your decision.
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- Does having excess amounts of cash means that the firm has maximized wealth? Discuss the above statements in light of an understanding of wealth maximization.Imagine you were to start your own business in Kleve, manufacturing small but smart household robots. Assume your business has developed a product currently superior to any competition. You have secured an initial manufacturing facility in Kleve-Kellen, with enough space to expand. However, the manufacturing process is complex. You have already convinced a number of very wealthy investors to meet your financing needs of the next two to three years, so there is no pressing need for going public yet. 1. Why would your business "go global" early on? And how would your startup business be positioned in a global market? 2. Please propose a likely sequence of steps, that your business has to take to achieve this sort of global ambition. Don't just name the steps but also elaborate on business resources you consider essential. 3. Please identify the three biggest challenges you expect to meet in the process of "going global"! Please be as specific as you can be, the more your analysis….Assume that you are the manager of a company and there are bad news for investors. What day of the week would you prefer to release this information so as to minimize impact on prices of your company? Explain your answer
- What is the main reason lenders pay borrowers' property taxes through a pre-paid escrow account? It prevents a tax lien from being applied to the home. The tax lien would be senior to the mortgage lien. It prevents the borrower from refinancing with another lender because they would lose all of their escrow funds. It allows the lender to earn interest on the pre- paid tax money as itsits in the account. It allows the lender to take advantage of corporate tax deductions.2. what is the difference between start up finance and start up revenue? explainA small catering business in your city is for sale for $250,000. The company specializes in business luncheons and small social events. The owner has been running the business for four years from her home but is expecting her first child and wants to sell. You will need outside investors to help you purchase the business. Develop questions to ask the owner about the business and its prospects, as well as a list of documents you want to see. What other types of information would you need before making a decision to buy this company? Summarize your findings in a memo to a potential investor that explains the appeal of the business for you and how you plan to investigate the feasibility of the purchase.
- Discuss Controlling. Discuss the importance of two basic types of financial statements.The company's bank won't lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow the company to borrow. Please provide a detail explanation for numbers 1-4. 1. Explain how to secure the bonds with owned assets in great detial. In what ways does it make the bonds more attractive to allow the company to borrow? 2. What is the agreement to subordinate future debt? How does it make the bonds more attractive? 3. What does providing a restrictive indenture limiting the risk in future undertakings do? How does it make the bonds more attractive? Explain in great detail. 4. How does providing a sinking fund for principal repayment make the bonds more attractive? Explain in detail.Chapter 22 Organizations determine whether to take on debt and how much to take on are common and necessary parts of financial planning. Explain the sources of capital that are available to an organization to obtain funds. Chapter 23 Explain why an organization should buy or lease when purchasing equipment.
- What factors should businesses consider when determining financing needs to determine whether they can repay the debt? a. Inventory b. Depreciation c. Liquidity d. EquityWhich of the following refers to the rate that bond investors expect to get for investing in a bond?Mr. Thava is planning to open a restaurant. He allocates 50 percent of his capital from his own saving and another 50 percent borrowed from financial institution. Advise Mr. Thava any FIVE (5) principles of good lending to make sure he can be focus in his business and at the same time maintain a good reputation as a borrower.