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Author Question: Debt financing by a franchisee is typically found in two forms a. selling part of the ownership to ... (Read 56 times)

Deast7027

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on: Jun 29, 2018
Debt financing by a franchisee is typically found in two forms
 a. selling part of the ownership to partners and funds granted from family and friends
  b. selling part of the ownership to partners and bank financing for working capital
  c. funds granted to franchisee from family and friends and bank financing for working capital
  d. borrowing money for working capital and for financing capital expenditures.

Question 2

The value of a service is reflected in the price/demand elasticity of the product.
 
 Indicate whether the statement is true or false


todom5090

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D. Borrowed fundsshort-term arrangements as bank loans or trade creditsand long-term loans for capital equipment, purchase of land or buildings are all considered as debt financing. Selling ownership into the business and gifts of money to the firm would be considered as equity investments into the business, not debt.

Answer to Question 2

T


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