Tuesday, January 19, 2010

The Capital Structure Decisions of New Firms

"Outside debt (financing through credit cards, credit lines, bank loans, etc.) was the most important type of financing for new firms, followed closely by owner equity. These two sources accounted for about 75 percent of startup capital."


Why so? May be because the owner does not want to share his profits or may be that he could not find a partner.

The Capital Structure Decisions of New Firms


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