two main ways companies raise capital B u s i n e s s F i n a n c e
would you write an comment and response about 300 word to this discussion
Although there are many challenges businesses face regarding IT systems, these two topics stood out to me in immediate relations to my current and past job. Both mentioned in the chapter 14 slides.
One of the biggest benefits and challenges that come with business IT systems are the increases in availability/access to store and provide information and the counter part of securing that same information from hackers. This topic is important to my current job since I am a contractor for the government. Extensive training is provided yearly to help decrease the possibilities and increase the awareness of cyber threats. Our systems are constantly changing to ensure we have the best live systems with the most secure networks.
The second benefit and challenges are knowing how to adequately read data provided and utilize that information for efficiency, growth, innovation and agility to business demands. This is such a simple but difficult task that many do not really see as it is more of a behind the scenes tasks. In my past retail experience I was utilized to read, analysis and make business goals based off of trends from profit and loss statements for different locations. Understanding how to depict the information provided can be a key variable to success because if you do not understand, see opportunities and/or cannot see strengths and weaknesses you cannot plan s business strategy successfully. This correlates to many industries now where IT are becoming so advanced that managers have to be skilled in comprehension and action planning based off the data provided. The slides discuss these issues individually however I think it lacks the importance of the personals abilities and expertise which is why I wanted to elaborate on the knowledge needed to utilize the information IT systems offer for success.
Ebert, R., & Griffin, R. (2018). Business Essentials (12th Ed.). Pearson.
- Identify the pros and cons of equity financing and debt financing, which are two main ways companies raise capital.
The main differences between debt verses equity financing consists of ownership and repayment strategies. According to the article referenced, “”Debt” involves borrowing money to be repaid, plus interest, while “equity” involves raising money by selling interests in the company” (2019). In most instances of company growth these are the two avenues to increase funding and what you trade for the funding.
Debt benefits include you don’t lose any ownership or future influences on company decisions, taxes on the loan can be claimed decreasing overall cost of the loan, less federal and state laws to comply with and no costly consistent communication with stakeholders.
Debt disadvantage revolves around how much more it will costs you to grow and the balance of debt to equity is risky for growth. Budgeting is essential because funds are tied up and guarantees or collateral are typically involved.