Essay
Mini-Case 15-2: Bowden Brake Service
Jim Bowden has been operating his business for some time now and thinks it is time to grow and expand. To compute the cost of expanding his existing business, Jim Bowden makes the following estimates:
Adjacent lot $40,000
Metal prefab building 25,000
Hydraulic lifts 15,000
Tools and equipment 9,000
Parts and inventory 5,000
Additional operating expenses 55,000
TOTAL $149,000
-Explain to Jim the possible (and realistic)sources of capital for expansion. Where would you recommend that he go for the funds he needs? Why?
Correct Answer:
Verified
To meet his fixed capital requirements, ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q47: Typically, the entire process of going public
Q48: In most SBA loans, the SBA does
Q49: Angels fill an important role in equity
Q50: Venture capital companies reject 90 percent of
Q51: In asset-based borrowing, the _ rate is
Q53: When the SBA makes a loan guarantee,
Q54: Investment bankers who underwrite public stock offerings
Q55: Explain the role that commercial banks play
Q56: A bank loan that imposes restrictions or
Q57: If an entrepreneur needs a relatively small