Jennifer has a patent for her software and feels the potential for profits is very high given the current market.Even though she is a one-person business at start-up she is confident she will be able to secure financing.What else does Jennifer need to know to determine how her business will financed?

Question

Quizplus · Accepted Answer

Jennifer needs to determine her preference for financing through debt or equity. This will determine the type of investors she will seek and the terms of the financing. Knowledge of sales of closest competition, demographics of target market, and projected salaries of executives may be helpful in other aspects of the business, but will not directly impact financing decisions.

Jennifer Has a Patent for Her Software and Feels the Potential