Equity Finance Case Study

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Q1. A Equity Finance Equity finance is a way of gathering or raising new capital through sales of additional shares to existing shareholders or selling shares of the company to the public, financial institution or institutional investors. • Internal Equity Finance – In Internal finance, money is mostly raised by owner of the small business or sometimes by shareholders. It is when a Sole proprietor or Sole trader does not take profit out as drawings, and in fact uses the profit as savings to reinvests that again in business. Example – savings or personal loan. • External Equity Finance – In this source of equity finance money is raised by issuing shares outside of the company, in other words, it’s a sale of ownership interest to raise funds…show more content…
B External Equity Finance is the best option for Sam Bridgewater CEO of PFC, because as their business is growing they can get private investors like Investing angels. They are people who are willing to invest in the business, they see great potential for growth. And The Pure Food Co market is growing day by day, soon they will require more investors to expand their business all over New Zealand. Investing angels can be their friends or someone Sam knew and willing to invest, such as a person who knows about the project Sam is doing and wants to help the company…show more content…
All the employees are highly important for the business as they have the right experience and know all the policies of delivering the food properly, as the business is growing they can help the new staff get trained efficiently as well. Q6. Self-Management Skills 1. Time Management Time management is necessary for Sam Bridgewaters as his company is going through rapid growth phase. This assures his set goals and targets of his company will be achieved in a given time frame, as the company’s production now incorporates a full 28-day menu cycle. As the pure food company supplies chilled meals which only has a six-week shelf life, Sam has to timely manage the production and the delivery of those meals for the customers. Most importantly Sam needs to have regular staff meetings so he can evaluate the progress of the company. 2. Managing workload and stress As Sam is the CEO of the Pure Foods Company, it is most important that his work load and stress is managed in order to have a continuing stable business. With the expansion of his business
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