Planning And Implement Flashcards
1
Q
Steps
A
- Determine financial needs
- Prepare budgets
- Develop record system
- Assess financial risks
- Financial controls
2
Q
Debt finance
Advantage
A
- ownership does not change
- interest payable is tax deductible
- flexible options and products
3
Q
Debt finance
Disadvantages
A
- must pay interest
- finding the securities can be difficult and problematic
- interest payment can add to existing debt level
4
Q
Equity finance
Advantages
A
- cheaper as no interest payment
- do not add to existing debt
- new ideas flow in
5
Q
Equity debt
Disadvantages
A
- dilute ownership
- may loss some control
- not flexible
