Answer to Question #212091 in English for elisa

Question

Considering shop make up salon business idea, identify and evaluate the strengths and weaknesses of THREE sources of finance available to your business start - up. 

Answer 1

Three sources of finance for a business start-up could be own savings, selling of property and commercial loans.

The savings are essential since the business owner may not be forced to pay back if the business collpses. The disadvantage of this source is that it may not be enough for a startup.

Selling of property helps the business owner to get money to start a business. However, it could lead to loss of property in case the business collapses.

Additionally, commercial loans are also an important source of funds for business start-up. However, some commercial loans attract big interests, making it hard to pay back.