Submitted by loricannella on 08/22/2011 03:59 AM Flag This Paper
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Debt Versus Equity Financing Paper
ACC/400
There are ["There are" is an awkward phrase if "there" is not clearly a location] two types of financing: equity and debt financing. When looking for money, one
must consider the company's financial strength. The more money owners have invested in their
business, the easier it is to attract financing. If a firm has a high ratio of equity to debt, the
company should probably seek debt financing. However, if the company has a high proportion
of debt to equity, experts advise that you [Eliminate second person (you, your) in academic documents and avoid addressing the reader directly. Prefer third-person pronouns (he, she, they, it)] should increase your [second person] ownership capital for additional
funds. This way won't [Contractions are inappropriate in academic writing--write it out] be over-leveraged to the point of jeopardizing the company's
survival.
Equity financing requires selling an ownership interest in the business in exchange for
capital. The most basic hurdle to equity financing is finding investors who are [Writing suggestion: rewrite the sentence to remove "who are"] willing to buy into
your [second person] business; however, the amount of equity financing that you [second person]...