MGTA01H3 Study Guide - Midterm Guide: Sole Proprietorship, Underwriting, Initial Public Offering
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MGTA01H3 Full Course Notes
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Student : please write all answers in pen and as clearly and neatly as possible. Do not write below for marking purposes only. Imagine that you wish to start your own business, but are worried about financing the new venture. You have been turned down for a loan by your bank. You remember hearing in your intro to management course that somehow your customers could help with your financial needs. This refers to gaining trade credit from your suppliers. Here, you may attempt to get companies that supply you with goods or services to bill you at a later date. You are prepared to start the business by yourself, but are wondering about the legal structure you should use. Consider the legal structures that are available to you, and explain which one you would select as most appropriate. You could conduct the business as a sole proprietorship. (2 marks)
