Application Exercise You have been considering going into bu

Application Exercise

You have been considering going into business for three years and have saved $10,000 toward this dream. Since graduating from college two years ago, you have worked full time at a bank as a credit analyst and part time at a bookstore. These jobs have given you some perspective on financial services and retail trade. Now, you are ready dig in and find a business to buy or start.

1. How will you decide what type of business to own (industry, geography, lifestyle, technology, etc.)?

2.Why would you (or would you not) weigh the option of buying a business?

3.Identify three possible sources of information on businesses for sale and find two possibilities from each. Ex. Yahoo finance

4.Select one of the businesses and explain why it interests you as a possible investment.

TIP: Chapter 3 FINDING OPPORTUNITY IN AN EXISTING

Remember APA Format include your references.

Book: Chapter 3, Entrepreneurship and small business management.

https://bookshelf.vitalsource.com/#/books/9781256506737

Solution

Q.1. In order to decide what type of business to own, I would study the existing market condition. This will help to understand the kind of business that one should start. The business should be in an area where there is a strong need for the product manufactured by the business. This analysis can be done by studying the current market conditions, the lifestyle of the people and the usage of technology in that sector.

Q.2. If I have to decide between buying a business and starting a new one on my own, then I would prefer to start a business on my own. The reason for this is that I would then be able to carry out the work of the business according to myself. Also I can start afresh and in my own way to manage my business. Though there are some advantages of buying an existing business, there are also some disadvantages like the impression of the old business will continue.

Q.3. Sources of information for businesses are Yahoo Finance, Bloomberg, Morning Star. They give detailed information about the company, its finance and other details. Eg: Pillsburry

Q.4. I would interested in investing in Amazon as it is a well to do company and has been performing well over a period of time. The investment in Amazon would be interesting as there is still scope for the business to do well in future.

References:

Yahoofinance.com

Bloomberg.com