Apply It 4.3: Financing Business Operations

  • Identify sources of funding for businesses
  • Understand the difference between borrowing in the form of bonds compared to bank loans
  • Understand the difference between private and public corporations
  • Define stock
  • Understand how businesses choose between different sources of funding

Funding for Businesses

You can view the transcript for “SoapSox: Our Story” here (opens in new window).

Soapsox

Consider the different methods of raising financial capital:

  1. Early-stage investment
  2. Reinvesting profits
  3. Borrowing through banks or bonds
  4. Selling stock

If you started a business like this, how would you raise financial capital?

See what professional investors had to say about this business on Shark Tank and what happened to the company after the founder appeared on the TV show.