accounting w5

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Assume you are the successful owner of technology store and repair service and you want to open a second store in a town 25 miles away.  You and your accountant have an estimated cost of $600,000 to set up the store and keep it going until you begin to earn a profit.  Your bank has agreed to set up a loan for that amount and you also have an investor willing to provide $600,000 in exchange for part ownership of the business.  Answer the following questions:


1.  What additional information would you want before making the decision?

2.  What is an advantage and disadvantage of the debt option?  Of the investor option?

    • 9 years ago
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