Advantages and Disadvantages of Long Term Financing (Essay Sample)
“A firm should consider carefully the advantages and disadvantages of different forms of long term financing; as such financing decisions have long term impact on the firm’s investing decisions.” Critically evaluate the above quotation in the light of the overwhelming evidence of different forms of long term financing methods available for consideration by the business entities. In this section students should demonstrate an understanding and knowledge of the theoretical aspects that underpin the long term financing methods. The evaluation should be supported with relevant, contemporary, academic research that has been undertaken within this field and should be referenced accordingly. Ensure the response does not become overly descriptive within its approach, rather attempts to incorporate a critical perspective integrating relevant academic literature, allowing logical conclusions to be proposed.
ADVANTAGES AND DISADVANTAGES OF EQUITY AND DEBT FINANCING
Name of Student
Name of Professor
Advantages and Disadvantages of Equity and Debt Financing
Every business, whether small, medium, or large, requires finances to cater to its current and future financial needs. As a result, organizational managers should collaborate in strategic financial planning to ensure the business meets its current and future financial requirements. The needs of a business can be short or long-term. Equity and debt financing stand as two main forms of long-term financing to which any business can subscribe. Equity financing entails a situation in which a business allows the public to partly own it by selling its shares to the public.
- Understanding Risk Attitude and Capital BudgetingDescription: Risk Attitude is majorly at a high level. It indicates the natural inclination as well as stakeholders’ basic nature if willing to take risks. Risk attitudes represent responses that stakeholders choose and are driven by their perception regarding a particular situation. The three risk attitude types...5 pages/≈1375 words| 10 Sources | Harvard | Accounting, Finance, SPSS | Essay |
- Personal Financial Statement and Interpersonal Communication and Behavioral FinanceDescription: Murray (2020) defines a personal financial statement as a spreadsheet or document explaining a person's financial position. In other words, a personal financial statement includes personal information such as address and names, along with an explanation of total liabilities and assets. Deduct liabilities...2 pages/≈550 words| 2 Sources | Harvard | Accounting, Finance, SPSS | Essay |
- Financial Manager's Report for CropCo's Fungikill Extension ProjectDescription: CropCo new extension will aid in the manufacture of Fungikill, one of the organization's main products. The extension has a rather significant effect on the organization's finances as it requires funds to be set up. In addition to the setup funds, other financial concepts need to be considered as the ...6 pages/≈1650 words| 2 Sources | Harvard | Accounting, Finance, SPSS | Essay |