FOCUS QUESTIONS FOR THIS SECTION
How are credit, collateral, capital, character, and conditions considered when starting a business, as well as lending to those who need funds to open a business?
Where can an entrepreneur obtain financing to start a business?
Section 2: Business Startup and Financing
SECTION DESCRIPTION
When starting a business, an entrepreneur must find the money to start their new venture. In these lessons, students learn how to make financing decisions and become worthy candidates for credit. Students also consider various factors for starting a business and the importance of goal setting at the beginning stage of the business.
LESSON OBJECTIVES
Define credit, collateral, capital, character, and conditions as these terms relate to financing of a business.
LESSON OBJECTIVE
Identify each of the 5 Cs of Credit and how they demonstrate qualities of a reliable borrower.
LESSON OBJECTIVES
Interpret characteristics of an ideal business borrower.
LESSON OBJECTIVES
Hypothesize decisions of a business owner.
Analyze the Executive Summary of two forms of business.
Analyze costs and benefits of owning a business.
LESSON OBJECTIVES
Consider the startup cost of a company and the amount of funds available to invest.
Evaluate costs and benefits of starting a business.
Develop an executive summary and cover letter in order to obtain a business loan.