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HOW DO SOURECES OF BUSINESS FINANCE FiT IN WITH THE LEGAL STRUCTRE ???????????


HOW DO SOURECES OF BUSINESS FINANCE FiT IN WITH THE LEGAL STRUCTRE ???????????

I'll give you the outline to answer this Q, but I won't do your homework for you.


For each of the business structures (sole proprietorship, S Corp, C Corp, partnership, LLC, LP, etc) in which you are interested, answer the following Qs:

1. From how many individuals/entities can a firm raise capital and how disperate can these sources be?

2. In what markets can a given type of business raise its capital?

Here is a headstart: A sole proprietor is limited to his/her own capital contributions and any loans- most likely from local banks- that he/she can raise in his/her own name. Consequently, SPs tend to be rather small affairs in which the SP is involved with most or all day-to-day decisions.

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