Obtaining Additional Capital for a Sole Proprietorship

What options does Nina, the owner of an organic farm, have to obtain additional capital for her sole proprietorship?

- Dipping into her bank account - Borrowing money using her home as collateral - Seeking investments from angel investors

Answer:

Nina, the owner of the organic farm, has several options to obtain additional capital for her sole proprietorship. She can choose to:

- Dip into her personal bank account - Borrow funds by using her home as collateral - Seek investments from angel investors

Obtaining additional capital is a crucial step for any business, especially for sole proprietorships like Nina's organic farm. By exploring these options, she can secure the funds needed to expand and enhance her operations.

Dipping into her personal bank account is a quick and straightforward way for Nina to access capital. However, this approach may deplete her personal savings and impact her financial stability.

Borrowing money using her home as collateral provides Nina with a source of funds while leveraging her property as security. This option involves risk, as failure to repay the loan could lead to the loss of her home.

Seeking investments from angel investors offers Nina an opportunity to secure funding in exchange for a stake in her business. While this option can bring valuable resources and expertise, it also involves sharing ownership and decision-making authority.

Ultimately, Nina must carefully evaluate these options and choose the one that aligns best with her financial goals and risk tolerance. By making an informed decision, she can obtain the additional capital needed to drive her organic farm's growth and success.