OtherPapers.com - Other Term Papers and Free Essays

Funding a Business

Essay by   •  January 11, 2012  •  Essay  •  646 Words (3 Pages)  •  1,675 Views

Essay Preview: Funding a Business

Report this essay
Page 1 of 3


My paper consists of trying to fund a business. It describes the meaning, functions, and importance of the four terms Investment Banker, Stock Market, Financial Management, and Risk Financing. It describes my decision for choosing licensing the technology as my source of funding. It also explains the pros and cons for my decision and describes one other possible option for this funding decision.

When funding a business there are many pieces to the puzzle. You'll need an Investment Banker, also be a part of the stock market, have financial management, and you might run into risk financing. You'll have to choose from the three options of funding, borrowing, sell stock, and license the technology. If I were to choose I'd choose license the technology.

Let's think about the four necessities. An Investment Banker, a person representing a financial institution that is in the business of raising capital for corporations and municipalities. The need for this person is to help you stay in the money. They know where to go to get funding. The Stock Market is a loose network of economic transactions, for the trading of company stock and derivatives at an agreed price, these are securities listed on a stock exchange as well as those only traded privately. You'll need this to sale the product. You'll either have to have know financial managing (applying general management principles to financial resources of the enterprise), or have an Financial Manager, which is the person who plans, organize, direct, and control the financial activities such as procurement and utilization of funds of the enterprise. You'll also have to know your financial risk involved in running and funding a business. Risk financing is money consumed in losses, funding either from internal reserves or from purchase of insurance. The need for knowing this is to know when the company is going to lose or gain in funding.

When choosing from the three funding sources borrowing, sell stock, and licensing the technology. My choice would be license the stock which is when a company develops a special, unique, technology it will frequently allow other firms to license that invention, in return for giving the firm which developed it, a share of the revenues the second firm earns (BUSN105 Unit 2 Glossary). One reason for my decision is because there are other companies that have similar products so they would now make money but they wouldn't be considered the competitor anymore because they would be selling my product. Another reason for my choice is because you don't have nobody to pay back if the product doesn't sale. There want be any kind of debt. If the product failed you walking away would be easy. With borrowing and sell stock [ when a corporation seeks to raise money it could either take on additional debt or sell stock; if it sells



Download as:   txt (3.8 Kb)   pdf (69.4 Kb)   docx (9.9 Kb)  
Continue for 2 more pages »
Only available on OtherPapers.com