Sunday, February 28, 2016

Week 8 Reading Reflection

       Debt Financing and Equity financing is a difficult product to truly grasp if you have to knowledge of finance and business. The most surprising part to me is the fact that more borrowing allows for potentially greater return on equity because relationships are due to intensify because of the monthly repay pressure of debt financing. In essence, being surprising it was the hardest idea to understand. Moreover, the author was not wrong about anything because the entire concept was so new to me. However, if I were to ask the author any questions I would ask him how to balance all these factors efficiently while being an entrepreneur with no prior business experience. Also is this prior question a determinant in startups failure.

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