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Business How to Build Your Company Financing Your Company Debt Financing

Marston Gould
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Marston Gould
PHP Development Techdegree Student 17,314 Points
Posted by Marston Gould
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Marston Gould
PHP Development Techdegree Student 17,314 Points

This quiz is wrong

1) the quiz is seems to indicate that debt does not require the amount of documentation that equity requires. This is simply not true. Banks handing you a loan will want every bit as much information as investors. Anyone thinking otherwise hasn't raised money.

2) the quiz indicates that debt can't be used to build a factory. Again, wrong. Most factories ARE actually often financed with debt offerings. In fact most construction businesses are financed through bonds which are a form of debt.

1 Answer

peyton caseria
PLUS
peyton caseria
Courses Plus Student 12,281 Points
peyton caseria
peyton caseria
Courses Plus Student 12,281 Points

Banks have an abundance of information, they usually make calculated guesses based of information crunched from every other contender.

Bank investors aren't using their own funds, they are reading guidelines from their superior.

A Private bank investor goes with their gut more often then given a strict guideline.

I hope this helped, I already had a few dilemmas with their videos.

Some of their videos have miss leading content, I personally have ran across 2.

I personally haven't gone into Debt Financing, Nor was I required to watch all of their videos to pass through the business section with ease. I found a few of the quizzes so far to do what you are saying and blatently miss lead me or give me 4 ultimatums and each one as equal to the previous.

I am giving the Business section the benefit of the doubt because its new, I think someone needed filler every now and then added the first thing on their mind that might fit.

Hopefully they have Business Professionals giving advice, So far it seems pretty generic which is why its coming natural to me.