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The goal of this lesson is to provide an overview of the most common methods for financing a new business or organization: debt and equity. The lesson begins with an overview of why businesses need external financing and what types of resources are most often needed for a new business. The pros and cons of debt and equity are then introduced, as are the most common features of each. The lesson then applies these same concepts to an existing business from a new project perspective, incorporating the idea of self-generated capital as an additional financing option.