D1

Refer to Chapter 9 on page 115 and then answer the following questions:

You have decided to open up a medical practice in Fort Lauderdale, Florida to lease to surgeons to perform surgeries.  There are 3 partners (including yourself).  Consider the capital structure required to start-up your business and answer the following questions:

1. Will you mostly take out loans (debt) to finance your business, look for investors (equity), use savings, etc.  Justify your answer with resources (textbook or outside resources).
2. List at least 2 potential risks the practice will face due to your capitalization decision.