PART 1
You have a great idea for a wonderful product but as most fledgling companies funding is an issue. This is one of most involved and complicated aspect of starting a business. For the purpose of this assignment, we will limit our options to the choices listed below. In real life there are more choices, and some are very worthy. As example are small business loans issued by the government, such as the Small Business Administration. Another option are investors, and they can come from any walk of life. These are people who like your company’s idea and are willing to take a chance on your company’s success. Lastly, you may be very fortunate and have a rich relative who is willing to help finance your business, or you may have come upon an inheritance.
(Remember to do PART 2 of the assignment which is listed below)
For now, let’s consider the following financing methods. These are the same as those discussed in the financing lecture.
1) Asset based financing -a specialized method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment, or real estate as collateral. It is essentially any loan to a company that is secured by one of the company’s assets.
2) Factoring a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.
Be sure to respond to each of the questions thoroughly and completely.
1) Please select one of the above listed financing methods you think is best for your company and explain why your company made that choice.
2) What factor or factors influenced your decision
Additionally, this type of loan may also offer more favorable terms than conventional sources such as banks or venture capitalists. For example, asset based financing involves lower upfront costs and less paperwork then other options – meaning that we could access the funds quicker and with fewer hassles involved (O’Brien et al., 2009). Furthermore, they generally don’t require personal guarantees from owners either – providing peace of mind should any unforeseen economic conditions arise in future.
Finally, there are also tax advantages associated with these loans since the debt payments are considered a business expense rather than an investment cost; this reduces our overall taxable income significantly which can add up to significant savings each year (Gibson & Romero, 2019). Therefore, all things considered, I strongly believe that asset based financing will provide my company with the best chance for long-term success moving forward.
North Korea didn’t declare that they had atomic weapons until 2005 where two years before they left the peace settlement this expressed that North Korea was to stop the increment of atomic weapons. From that point forward North Korea has been trying rockets and atomic weapons. In 2006, they led an underground atomic impact, 2012 they tried a rocket over the ocean yet immediately crumbled. In 2013 the U.N. added sanctions against North Korea, disallowing the commodity of a few military supplies, extravagance merchandise and forced sanctions on cash moves and expected to close North Korea out of the worldwide monetary framework. While in 2015 they effectively test a submerged submarine rocket and in Walk 2016 after the fourth atomic test and afterward the explosion of a nuclear bomb, the U.N. further fortified sanctions. It prohibited the product of gold, vanadium, titanium, and interesting earth metals to frustrate their economy. Most as of late they tried a rocket that specialists say have the chance of arriving at New York.
In spite of the fact that relations between the U.S.A and North Korea are focused on right presently back when Clinton was president they were pursuing predictability strategically. In mid 1994 North Korea threated to utilize atomic bars and transform them into atomic weapons, president Clinton got the opportunity to go after them however rather attempted to converse with them. This lead to the concurred structure bargain which said, “to freeze and eventually destroy its atomic program in return for the full standardization of political and monetary relations with the US”. For consenting to this they got fuel oil and help with development of the light water reactor. Their fundamental justification for consenting to this was a direct result of the deficiency of the Soviet Association, perhaps of their nearest partner, and China growing better relations with South Korea. In this way, they genuinely thought that having a superior relationship with the US would help them. This arrangement was working until another president was chosen 2001 started the downfall of relations between the US and North Korea, the Shrub Organization refused to compromise against North Korea. They accepted North Korea was not holding up their finish of the concurred structure, accepting they were improving uranium, yet was rarely really demonstrated. The US slice off oil shipments to North Korea which they took cruelly removing all IAEA reviewers from the nation and pulling out from the peace arrangement. In 2006 the principal atomic bomb was tried it was exceptionally feeble yet the U.N. set exceptionally quick authorizes advising them to pause and annihilate all atomic weapons in progress. North Korea expressed that the test was a direct result of US assent and strain these testing gradually went on until 2009 when it seemed as though quiet discussions might reoccur when unexpectedly Kim Jong-Sick kicked the bucket. His succesor Kim Jung-Un has expanded the speed and pace of atomic and rocket testing radically with progressively more risky weapons. One of the latest ones tried was 250 kilotons which can measure up to the one dropped on Hiroshima which was 15 kilotons.
Taking a gander at this present circumstance from the North Korean point of view there are some feasible justification behind needing a stockpile of atomic weapons. These weapons can be utilized as a discouragement against different nations going after or attacking them. On the off chance that different nations realize they have weapons of mass obliteration no one will need to go after them in view of dread of reprisal with these weapons. Alongside this North Korea is evening up the battleground there are eight different nations with atomic weapons, so by North Korea having these weapons they are not seen a simply one more socialist, conceivably threatening state. They are viewed as not a world chief but rather a country with power which causes them to be treated in a serious way by different nations. A later motivation behind why North Korea could see these bombs as perhaps being required is Presidents Trumps about North Korea for example