Answer all the questions below I have select a business topic which is based on cycling...

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Finance

Answer all the questions below
I have select a business topic which is based on cycling retailshop we sell bicycles in following shop and do repairing as well sothats the business which i have select below are the questionswhich have to be answered in regards to cycling business
Guide Questions
1. What is the total capital requirement?
2. Is a loan needed? What will be the equity contribution of theentrepreneur? And how much?
3. What security (collateral) can be given to the bankers?
4. What does the profit and loss statement indicate?
5. What does the cash flow statement indicate?
6. What does the balance sheet indicate?
7. What is the loan repayment schedule?
8. What is the break-even point (BEP)?
9. What is the return on investment (ROI)?
10. Is the project feasible?

Answer & Explanation Solved by verified expert

4.4 Ratings (744 Votes)

Answer 1 Total capital requirement depends on the size of your business you want For a cycle business we can assume that total capital required would be 650000 which includes all the cost related to starting the business Answer 2 Let assume we have 150000 in our hand so we will required a loan of 500000 and the equity contribution of the entrepreneur will be 150000 ie 2308 of entire capital required Answer 3 Security to the bank can be given for the loan See Answer

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