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James Clark Debt Financing Essay

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James Clark Debt Financing Essay
This means a loss of ownership. This can decrease James Clarks equity and loss of ownership of the restaurant. This distinct disadvantage in ownership loss is possibility of partners giving up untold shares of future profits for a bit of working capital in present. Furthermore, this means the new partner might not be willing to give more money to spend on the restaurant. On the other hand, less control. This means they need to discuss with their partners whom may not agree, which means loss of control. As well as, the cost of external financing is a major factor. Debt financing has associated interest payments and if James Clark restaurant struggles. This means it may be forced to accept higher interest rates on a loan or be forced to issue
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