{"id":2873,"date":"2023-02-19T16:10:57","date_gmt":"2023-02-19T16:10:57","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-4-3-financing-business-operations\/"},"modified":"2023-07-03T23:45:07","modified_gmt":"2023-07-03T23:45:07","slug":"apply-it-4-3-financing-business-operations","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-4-3-financing-business-operations\/","title":{"raw":"Apply It 4.3: Financing Business Operations","rendered":"Apply It 4.3: Financing Business Operations"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Identify sources of funding for businesses&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Identify sources of funding for businesses<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the difference between borrowing in the form of bonds compared to bank loans&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the difference between borrowing in the form of bonds compared to bank loans<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the difference between private and public corporations&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the difference between private and public corporations<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Define stock&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Define stock<\/span><\/li>\r\n \t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand how businesses choose between different sources of funding&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand how businesses choose between different sources of funding<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Funding for Businesses<\/h2>\r\n<iframe src=\"\/\/plugin.3playmedia.com\/show?mf=9475114&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=Z3-47rJTLdc&amp;video_target=tpm-plugin-py1xkrsa-Z3-47rJTLdc\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe>\r\n<p class=\"p1\">You can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/SoapSoxOurStory.html\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">transcript for \u201cSoapSox: Our Story\u201d here (opens in new window).<\/span><\/a><\/p>\r\n\r\n<section class=\"textbox connectIt\">\r\n<h3>Soapsox<\/h3>\r\nConsider the different methods of raising financial capital:\r\n<ol>\r\n \t<li>Early-stage investment<\/li>\r\n \t<li>Reinvesting profits<\/li>\r\n \t<li>Borrowing through banks or bonds<\/li>\r\n \t<li>Selling stock<\/li>\r\n<\/ol>\r\nIf you started a business like this, how would you raise financial capital?\r\n\r\n[reveal-answer q=\"283940\"]Click to Show Sample Answer[\/reveal-answer]\r\n[hidden-answer a=\"283940\"]Which method you choose to pursue would depend on your priorities. If you wanted to retain full control of your company, you might focus on reinvesting profits and borrowing. However, if quick expansion is your goal and you needed substantial capital to have your products manufactured, you might want to seek an investor.[\/hidden-answer]\r\n\r\nSee what professional investors had to say about this business on <a href=\"https:\/\/youtu.be\/D1od9LD4Ruw\">Shark Tank<\/a>\u00a0and <a href=\"https:\/\/youtu.be\/xfzppdEsAMM\">what happened to the company after<\/a> the founder appeared on the TV show.\r\n\r\n<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Identify sources of funding for businesses&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Identify sources of funding for businesses<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the difference between borrowing in the form of bonds compared to bank loans&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the difference between borrowing in the form of bonds compared to bank loans<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the difference between private and public corporations&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the difference between private and public corporations<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Define stock&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Define stock<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand how businesses choose between different sources of funding&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand how businesses choose between different sources of funding<\/span><\/li>\n<\/ul>\n<\/section>\n<h2>Funding for Businesses<\/h2>\n<p><iframe loading=\"lazy\" src=\"\/\/plugin.3playmedia.com\/show?mf=9475114&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=Z3-47rJTLdc&amp;video_target=tpm-plugin-py1xkrsa-Z3-47rJTLdc\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/p>\n<p class=\"p1\">You can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/SoapSoxOurStory.html\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">transcript for \u201cSoapSox: Our Story\u201d here (opens in new window).<\/span><\/a><\/p>\n<section class=\"textbox connectIt\">\n<h3>Soapsox<\/h3>\n<p>Consider the different methods of raising financial capital:<\/p>\n<ol>\n<li>Early-stage investment<\/li>\n<li>Reinvesting profits<\/li>\n<li>Borrowing through banks or bonds<\/li>\n<li>Selling stock<\/li>\n<\/ol>\n<p>If you started a business like this, how would you raise financial capital?<\/p>\n<div class=\"qa-wrapper\" style=\"display: block\"><button class=\"show-answer show-answer-button collapsed\" data-target=\"q283940\">Click to Show Sample Answer<\/button><\/p>\n<div id=\"q283940\" class=\"hidden-answer\" style=\"display: none\">Which method you choose to pursue would depend on your priorities. If you wanted to retain full control of your company, you might focus on reinvesting profits and borrowing. However, if quick expansion is your goal and you needed substantial capital to have your products manufactured, you might want to seek an investor.<\/div>\n<\/div>\n<p>See what professional investors had to say about this business on <a href=\"https:\/\/youtu.be\/D1od9LD4Ruw\">Shark Tank<\/a>\u00a0and <a href=\"https:\/\/youtu.be\/xfzppdEsAMM\">what happened to the company after<\/a> the founder appeared on the TV show.<\/p>\n<\/section>\n","protected":false},"author":21,"menu_order":19,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"SoapSox: Our Story\",\"author\":\"SoapSox\",\"organization\":\"\",\"url\":\"https:\/\/www.youtube.com\/watch?v=Z3-47rJTLdc\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2853,"module-header":"apply_it","content_attributions":[{"type":"copyrighted_video","description":"SoapSox: Our Story","author":"SoapSox","organization":"","url":"https:\/\/www.youtube.com\/watch?v=Z3-47rJTLdc","project":"","license":"arr","license_terms":"Standard YouTube License"}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2873"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":8,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2873\/revisions"}],"predecessor-version":[{"id":7436,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2873\/revisions\/7436"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2853"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2873\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=2873"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=2873"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=2873"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=2873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}