starting a business. i) line of credit a) similar to a loan b) get them through times of low sales
TRANSCRIPT
![Page 1: Starting a Business. I) Line of Credit A) Similar to a loan B) Get them through times of low sales](https://reader036.vdocuments.mx/reader036/viewer/2022081816/5697c0011a28abf838cc2420/html5/thumbnails/1.jpg)
Starting a Business
![Page 2: Starting a Business. I) Line of Credit A) Similar to a loan B) Get them through times of low sales](https://reader036.vdocuments.mx/reader036/viewer/2022081816/5697c0011a28abf838cc2420/html5/thumbnails/2.jpg)
I) Line of Credit
• A) Similar to a loan• B) Get them through
times of low sales
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II) Bonds
• A) Corporation borrows money by selling certificates
• B) Promises to pay back plus interest
• C) Low risk
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III) Common Stock
• A) Share in partial ownership of a corporation
• B) Have greater potential for growth
• C) High risk
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IV) Mergers
• A) Horizontal Mergers– 1) Merger of
Companies in the same industry
– 2) Regulated by the gov’t to prevent monopolies.
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b) Vertical Merger
• 1) Merger of two companies at different stages of production
• 2) Regulated by the gov’t to insure competition
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V) Conglomerates
• A) Merger between two unrelated companies.
• B) Not regulated because little effect on competition