Planning And Implement Flashcards by Xinru Zhang

Q

Steps

A

Determine financial needs
Prepare budgets
Develop record system
Assess financial risks
Financial controls

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Q

Debt finance

Advantage

A

ownership does not change
interest payable is tax deductible
flexible options and products

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Q

Debt finance

Disadvantages

A

must pay interest
finding the securities can be difficult and problematic
interest payment can add to existing debt level

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Q

Equity finance

Advantages

A

cheaper as no interest payment
do not add to existing debt
new ideas flow in

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Q

Equity debt

Disadvantages

A

dilute ownership
may loss some control
not flexible

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