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Author Question: Define debt and equity and explain the difference between them. Where does each appear on financial ... (Read 82 times)

awywial

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on: Jul 6, 2018
Define debt and equity and explain the difference between them. Where does each appear on financial statements?
 
  What will be an ideal response?

Question 2

Discuss some of the reasons why buying an existing business would benefit you.
 
  What will be an ideal response?
Entrepreneurship and Small Business Management ¦ Mariotti, Glackin ¦ 2nd Edition
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HandsomeMarc

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Reply #1 on: Jul 6, 2018
Answer to Question 1

Equity is the amount of capital invested in a business by the entrepreneur and/or other investors, while debt is the capital borrowed from others. Both debt and equity appear on the opposite side of assets on a balance sheet.

Answer to Question 2

Acquiring an existing business can simplify and accelerate the process of becoming an entrepreneur. Other benefits include reduced risk, the potential to buy a going concern for less than it would cost to start a similar company, and the ability to capitalize on one's knowledge of an industry.


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