Ask Question
BusinessBusiness
28 November, 21:31

Bernie just started a business and is trying to raise capital. He has both accredited and non-accredited investors investing in the company. What constraints on investments for new businesses apply here?

+5
Answers (1)
  1. 28 November, 23:48
    0
    I can see that there are no choices.

    Liquidity Constraint and Time Horizon Constraint

    Explanation:

    "Investment constraints" refer to the factors which restricts the investor into accessing some investment options. This could be classified into two: internal and external.

    Liquidity Constraint is common for businesses and this is related to the "cash outflows." Since he is just starting a business, it would be better if he considers this so he'd value assets which can be converted into cash, without affecting the value of the portfolio.

    Time Horizon Constraint is necessary because Bernie needs to know the time for the returns of investment. This classifies the investments into short-term or long-term.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Bernie just started a business and is trying to raise capital. He has both accredited and non-accredited investors investing in the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The nominal interest rate in an economy is 5 percent, and there is also a 15 percent probability of having cash lost or stolen in the economy.
Answers (1)
This week's assignment is to pretend that the career services office at your university wants to develop a system that collects student resumes and makes them available to students and recruiters over the Web.
Answers (1)
Jean is contemplating opening her new small business called Jean's Gems. She realizes that the first step in beginning her new business is writing a business plan. Since she has never started her own business before, she has many questions.
Answers (1)
Zaney, Inc. operated Zaney's Bar and Grill. An officer of the corporation instructed the bartender at Zaney's to "maintain order" at the bar.
Answers (1)
Which result is a positive aspect of globalization? intense competition decreased profit margins increased coordination costs business expansion
Answers (1)
New Questions in Business
Which of the following statements accurately describes the efficient market hypothesis? A. Stock prices must go up upon good news, even if the news was expected. B.
Answers (1)
Kramer Enterprises reports year-end information from 2015 as follows: Sales (160,000 units) $960,000 Cost of goods sold 640,000 Gross margin 320,000 Operating expenses 260,000 Operating income $60,000 Kramer is developing the 2016 budget.
Answers (1)
What is purchasing process?
Answers (1)
The report of which agency states, "it is paradoxical that obesity is increasing in the us while more people are dieting than ever before, spending, by one estimate, more that $33 billion per year on weight-reduction products and services?
Answers (1)
Which of the following are inefficient markets? Select all that apply. Consumers compete for wages in a free market economy. Consumers wait in line to buy a sale television because the first to come is the first served.
Answers (1)
Home » Business » Bernie just started a business and is trying to raise capital. He has both accredited and non-accredited investors investing in the company. What constraints on investments for new businesses apply here?
Sign Up Forgot Password?