Rosshandler grew up in Australia but was drawn to New York City, where she worke

Question

Rosshandler grew up in Australia but was drawn to New York City, where she worked as legal counsel for an put in long hours at her job, but her ss of ber own, just is thinking a breath mint sold in stralia that really worked. She had never seen a similar in the United States and which appear in the mouth, as most breath mints do outh only ly at her target audience does the ying here?" She in Sydney; and online at Amazon, Victoria met Arthur Shorin, who had recently sold his business, the Then, through her network of and offered to invest a minimum of atwhatever met certain rtuitive, Shorin's business incubator for start-up companies osshandler talked to several friends about the deal, and they advised her to reject Shorin's offer, citing what one

Explanation / Answer

a). Potential sources might me:-

1. loan from banks- she can spoke with bank to raise loan.

2. Venture capitalist – she can take help from venture capitalist who after knowing her idea might find it fruitful to invest their money in her business. I think this is the best alternative which she can explore.

3. Other shorin competitors- she can source out the competitors of the arthur shorin and obviously they would also love her idea. So she might be able to take advantage of those competitors.

4. Friends/ family- last option would be taking help from friends and family. This is the last option if other option does not work.

b). debt-

1. Debt advantage helps you to new building, equipments and other assets to grow the business. This will create aggressive growth strategy.

2. Debt disadvantage – you need to repay the loan with the interest amount. In case of failure of the business the bank will take the possession of your building and assets.

Equity-

c). Yes from my point of she should accept that offer. Because ultimately she will get more return in the coming years. And her percentage share would increase to 40%. In that way she can earn more money. See there are two types of people in the society.

One who have money but have no idea where to invest

Second who have idea but no money

In both the case one have to suffer, if the idea does not work the investors money will be lost. So he is having risk of losing money.

So in both the respect one is losing. You are losing your share and he is having risk of loss of money in case of failure of business.

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