Question
Offer #1 From Barbara: $350,000 1/2 as equity for 15% of the company 1/2 as a loan Offer #2 From Lori: $350,000 All the dollars
Offer #1 From Barbara: $350,000
1/2 as equity for 15% of the company
1/2 as a loan
Offer #2 From Lori: $350,000
All the dollars for 10 Equity
$2 royalty for each can of product sold
1.) Analyze/assess quantitative (numbers #) to help make the investment decision in order to better understand how each offer would generally (I know you do not have the full financial information yet) impact the financial statements of the organization initially and over time,
- Offer #1 from Barbara
- list one (1) impact and one (1) account for the Income Statement AND one (1) impact and one (1) account for the Balance Sheet
- Offer #1 from Lori
- list one (1) impact and one (1) account for the Income Statement AND one (1) impact and one (1) account for the Balance Sheet
Example - an impact to the Income Statement could be increased sales, which will impact the revenue account. An impact to the Balance Sheet could be increased cash, which would impact the cash account. (Do not Reuse either of these examples)
2.) Consider qualitative information about investors and recommend which offer to accept (I know you do not have the full financial information yet).
Barbara Corcoran's credits include straight D's in high school and college and 20 jobs by the time she turned 23. It was her next job that would make her one of the most successful entrepreneurs in the country: She borrowed $1,000 and quit her job as a waitress to start a tiny real estate company in New York City. Over the next 25 years Barbara would transform that $1,000 loan into a $5 billion real estate business, building the largest and best-known brand in the business.
Lori Greiner started with one idea and turned it into a multi-million-dollar international brand. She is regarded as one of the most prolific inventors of retail products, having created over 500 products, and currently holds over 120 U.S. and international patents. Lori can tell instantly if a product is a "hero or a zero," and this is clearly shown through her many thriving investments and a 90% success rate on her new items launched. She's also well known for her impeccable negotiating skills and her uncanny ability to know and identify emerging brands and invest in them.
- Which offer are you recommending - Lori or Barbara?
- Why? Provide at least one (1) reason why you are recommending this offer.
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