what are some ways to make it easier for both parties when friends/family provide equity financing?

Q: which one of the following accounts has the best liquidity

A: Liquidity is denoted as the cash immediately available at hand. If sufficient cash at hand is…

Q: What types of decisions do people in finance make?

A: Finance people in the company take decisions with the aim that the outcome of the decision is…

Q: What is meant by a participation loan? What does the lender participate in? Why would a lender want…

A: Participation loans: It is a type of loan in which the lender shares the net operating income of the…

Q: For an individual investor, investment in which one of the following accounts has the best…

A: An investment is liquid if one is able to convert it to cash at any point in time.

Q: What is meant by a banker’s acceptance?

A: Money market instruments refers to financial instruments whose maturity period lies between 30 to…

Q: What role do interest rates play in allocating capital to different potential borrowers?

A: Rate of interest : It is the amount paid by a borrower to use the capital borrowed from the…

Q: What are the advantages of Internal Financing and give an example of Internal Financing at least 2…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is a financial investment that represents a loan made to a private business?…

A: Financial investment means the amount invested in financial instruments by an investor. It can be in…

Q: Which of the following can be described as involving indirect finance? a. People pay premiums to an…

A: An indirect finance is referred as the finance, where the borrowers used to borrow the funds from…

Q: Briefly explain the following investment channels with each one’s own returns and Risks. Bank…

A: Return and risk of investments are mostly proportional.

Q: How can Kate determine whether sentiments will be able to meet its interest and principal payments…

A: Step 1   Financial statements will provide information related to the company’s revenue, expenses,…

Q: The following are examples of debt financing EXCEPT: a. Selling an ownership stake in the company…

A: Bonds represent the amount which is raised by the firm where repayment is made after a certain time…

Q: Which of the following may be considered your indirect investment? Investments made by a fund that…

A: Indirect investments : In simple words, An indirect investment is one made through the acquisition…

Q: Types of properties in the National Association of Real Estate Investment Trusts (NAREIT) divides…

A: Introduction: Real estate investment trust is a company that owns or primarily operates real estate…

Q: Discuss the concept of finance and money from the perspective of a consumer and an investor.

A: Money is a concept that is very difficult to interpret or define in exact terms. Money can be…

Q: .What are the reasons for investing?

A: Investments: This includes people who determine the some values and returns relationships related…

Q: Which of the following forms of business organization can finance its operation through acquiring…

A: The corporations are considered as separate legal entity. They have different types of methods for…

Q: What are annuities, growing annuities, perpetuities and growing perpetuities. What are the…

A: Annuity is a sequence of equal payments that take place over a fixed number of periods. Payments…

Q: Benefits of a savings account for borrowers ?

A: The saving account refers to the type of account in a bank that provides the facility to deposit the…

Q: what are the advantages of getting equity financing from friends and/or family members?

A: It is irrelevant from whom you get finance the relevant is in what form you get finance. it means…

Q: your simple habit for personal finance success

A: There is need for personal finance success and must follow certain steps to be successful in…

Q: Briefly describe the process that led from a homeowner purchasinga home to an investor purchasing a…

A: CDO is the security that is issued to several investors backed by the collateral assets held by the…

Q: Which of the following can be described as involving direct finance? O A. People buy shares in a…

A: Borrowers borrow funds directly from the financial market without the need of a third-party service…

Q: Describe the process of Private Equity Placement & Preferential Equity Issue. Explain Investment…

A: Private equity placement is the process that is frequently used by the company in order to raise…

Q: What obligation does an entrepreneur (owner) have to investors that purchase bonds to finance the…

A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…

Q: What are noncash investing and financing activities?Give one example.

A:

Q: What are the different types of SSS loans?

A: A SSS loan is given in the Philipines, which is majorly divided into three categories.

Q: What does shareholder’s equity includes? Explain them.

A: Shareholder’s equity: The claims of owner's on a company’s resources after the liabilities are paid…

Q: ssible analysis that determine whether the clients will be able to repay the loan and interests in…

A: When granting loans it is necessary to do the analysis of client whether he will be able to pay back…

Q: Why would an investor-borrower want a participation loan?

A: SOLUTION:- Participation loan: it is a kind of loan in which lender participates in the net…

Q: How important is the ability to borrow money from an individual and what is the primary risk of…

A: Borrowing money is the act of obtaining money from the lender in order to fulfill a financial goal…

Q: Explain equity participation loans?

A: Equity participation loans refer to the situation where the owner or lender will reduce the interest…

Q: Explain the disadvantages and dangers of Home Equity Loans.

A: The disadvantages of home equity loans:Higher rate of interest: The interest rates are typically…

Q: What is return on shareholder's equity?

A: The return on shareholders' equity can be determined by using the following formula: ROE = Earnings…

Q: Which of the following is a feature of a home equity loan?   Group of answer choices a. The interest…

A: A home equity loan is like a second mortgage loan is a type of loan. Home equity loans permit…

Q: Explain HOME EQUITY LOANS?

A: Home Equity Loans are the loans that are taken in against of the equity for their home.  These are…

Q: For an individual investor, investment in which one of the following accounts has the best…

A: Liquidity means converting assets easily into cash. A companies liquidity is the ability of the…

Q: Which of the following is a financial investment that represents a loan made to a private business?…

A: Purchasing mortgage backed securities, doesn't represents a loan made to a private business.

Q: Explain the Investment Appeal of Equity Trusts?

A: Answer: REIT is a corporation that maintains and manages income generating real estate properties in…

Q: Suppose you are relatively wealthy and are looking for a potential investment. You do not plan to be…

A: Partnership:- where more than one person joins their hands together to conduct a business. They make…

Q: Which is the opportunity of equity-oriented real estate investment trust that has provided…

A: Equity-oriented real estate investment trust: The REIT is a real estate investment that has…

Q: How much cash will be distributed to the partners?

A: The partner's profit & loss sharing ratio- A: 25% C: 35% J : 40%

Q: Which of the following is a financial investment that represents a loan made to a private business?…

A: Introduction: Financial investment is considered as the amount capitalized in financial instruments…