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FUNDING A BUSINESS

FUNDING A BUSINESS
Christopher Roberts
American Intercontinental University

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ABSTRACT
The Inventor has best found that sole proprietorship works best for him. Now, he has to face which option for funding will be best for him and his business. He will research three options: borrow money, sell stocks or license the technology. He will view different aspects of business financing and research a few different tools that are needed: stock market, financial management and investment banking. He will learn the meaning, function and the importance of each of them. Furthermore upon conducting all research and weighing all options of the three choices, he will have come to the conclusion that borrowing money will best suit him and his business needs.

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Funding a Business An investment banker is a representative of a bank or financial firm whose job is to raise capital for corporations, boroughs, communities, cities, town and districts to just name a few. A few responsibilities of an investment banker are to organize and negotiate large financial transactions. They also take role of advisor to company clients and introduce beneficial financial ventures for their own firm. When a company goes public an investment banker will assist in creating value for an I.P.O., initial public offering. The purpose of the stock market is to give firms a public forum where they can sell off portions of their company to raise capital. These portions of the company are called stocks. Stocks give the shareholders a minority ownership within the company. Although the stockholders are considered part owners of the company, they do not the decision making powers on everyday items. The capital that is raised can be used to promote, enhance or expand the business or product line. Financial management has several factors. Long term investments are one of the

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