Page 541 - Introduction to Business

CHAPTER 14 Understanding the Financial System, Money, and Banking 515

Portfolio Projects

Exploring Your Own Case in Point Starting Your Own Business
In this chapter, you learned that financial systems affect After reading this chapter, you should update your
both individuals and business firms in important ways. business plan to address questions concerning your
Answering the following questions will help you gain financial resources.
insights into how your firm is influenced by financial 1. What internal sources of start-up (or seed) capital
news events. financing are available to you? (Hint: These capital
1. How are current monetary policies affecting your funds are needed to purchase equipment,
company in its home country? In your answer, property, and other fixed expenses.)
consider intermediate monetary targets, including 2. Can you use credit cards to help finance initial
money supply, long-term interest rates, and bank working capital needs, especially inventory and
credit. wage costs?
2. How are current economic conditions affecting 3. Contact your local Small Business Development
your company in its home country? Will the Center (SBDC). Does it know some local angels and
monetary policy goals of the central bank with banks that might offer financing for your new
regard to the economy be beneficial to your business? What kinds of financing are available
company? from these sources?
3. What sources of debt does your firm use? (Hint:
You might find this information by searching the
annual report for the firm or accounting
information available from the Internet at
http://finance.yahoo.com/.)

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