ADM 1300 Study Guide - Creamery, Status Quo, Prentice Hall

• School: University of Ottawa
• Department: Administration
• Course: ADM 1300
• Professor: All

Document Summary

Alternatives: status quo, bank loan, venture capitalists, angel investors. It is recommended that george get a loan from the bank for the 300,000$ that he needs to open his own granite slab creamery. In the immediate term, george will first need approximately 25% of the money necessary to receive the loan from the bank. Since it is evident his parents would like to help him, they can do this by putting a home equity line of credit for 75,000$ on his parents" home with a rate of approximately 5%. This allows for a very simple way for his parents to provide support, and will allow for george to acquire his loan. In the short term, george must continue to manage his profits sensibly in order to maintain monthly payments on the loan acquired from the loan while also continuing to pay the 5% of the home equity line of credit.