Assignment 6 BGaspard
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Scott High School *
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Course
101
Subject
Finance
Date
May 1, 2024
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Pages
2
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Assignment 6 BGaspard
(20 points)
Assignment 6: Business Finance
Instructions
Save this file in your course folder, and name it with Assignment, the section number, and your
first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be
named Assignment1JRobinson.
Type the answers to the assignment questions below. Use complete sentences unless the
question says otherwise. You will have more than one day to complete an assignment. At the
end of each day, be sure to save your progress.
Review Lesson 4 of the Course Overview for instructions about turning in your assignments.
Assignment Questions
In Section 6, you learned about business finance. Now, you'll apply what you learned.
1. For this assignment, choose a type of company that you could imagine yourself starting.
Describe the type of company. (1-4 sentences. 1.0 points)
I could imagine myself starting a technology start up that would focus on developing mobile
applications. The application would cater to the increasing demand for mobile solutions across
various industries by creating innovative apps for productivity, entertainment, education, or other
activities.
2. Describe at least two sources you would use for funding your company. (1-2 sentences. 2.0
points)
Two sources I would consider for funding my company are venture capital firms and loans from
the bank. Venture capital firms can provide substantial funding in exchange for equity, while a
loan from the bank could fund my project, and I would pay the bank back over a period of time.
3. Would you rather fund your company using mostly debt funding, or mostly equity funding?
Why? (1-5 sentences. 3.0 points)
I would most likely fund my company mostly through equity funding. Equity funding involves
selling a portion of ownership in the company in exchange for capital. This method can help
reduce the financial burden of debt repayment, especially in the early stages of a startup when
cash flow may be limited. This would make me feel safer in the business
4. Make a list of at least 3 startup costs this company would have. (Complete sentences are not
necessary. 3.0 points)
app development and design
marketing/ advertising campaigns
Equipment
office space
employee salaries
Legal fees
Insurance
5. Will your company use cash-basis or accrual-basis accounting? Explain why. (1-3 sentences.
2.0 points)
For my company I would use accrual basis accounting. This type of accounting recognizes
revenue when it is earned and expenses when they are used. providing a more accurate
representation of the company's financial position and performance over time.
6. Will you use single-entry bookkeeping or double-entry bookkeeping? Explain why. (1-3
sentences. 3.0 points)
I would choose double-entry bookkeeping for my company. This is because it provides a more
accurate representation of financial transactions by recording both the debit and credit sides of
each transaction. I feel like using double-entry bookkeeping helps identify errors, tracking
financial performance, and ensuring accurate financial reporting.
7. List at least 3 risks your company will face, and explain how you will manage those risks. (1-6
sentences. 6.0 points)
Risks my company may face include technological changes impacting app relevance,
competition from established companies, and cybersecurity threats. To manage these risks, I
would focus on continuous innovation and market research to stay ahead, build strong branding
and customer loyalty, invest in good cybersecurity measures, and have contingency plans in
place for potential disruptions. Money might be a risk as well. If my business doest take off i
would risk going into debt and having no revenue to repay the bank who gave me a loan.
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