Business Capital and Investment Concepts

The video tutorial discusses the process of starting a physio practice, highlighting the financial challenges faced by new businesses. It explores the initial growth phase, the need for capital, and the difficulties in securing bank loans. The tutorial introduces the concept of seeking investment from individuals in exchange for business shares, explaining how this can facilitate business expansion and profitability.

Why might a bank refuse to lend money to a new business owner?

• The business owner lacks a financial record.

• The business owner has a strong financial history.

• The business owner has too much capital.

• The business owner has too many employees.

What is a common challenge for businesses with limited initial capital?

• Too many customers

• Rapid expansion

• Excessive profits

• Slow growth

What might a business owner do with additional capital?

• Reduce advertising

• Close the business

• Expand to a new location

• Decrease staff

Why might a bank still refuse a loan after six months of business operation?

• The business has too many clients.

• The business has a fluctuating income.

• The business has no expenses.

• The business has a stable income.

What does an investor expect in return for providing capital to a business?

• A percentage of the business

• Nothing in return

• Free services

• A fixed salary

What is the benefit for a business owner in accepting investment from others?

• Access to more capital for expansion

• Loss of business control

• Increased personal expenses

• Decreased business growth

What is a 'share' in the context of a business?

• A marketing strategy

• A type of business expense

• A portion of the business owned by an investor

• A loan from a bank

How can a business owner use shares to grow their business?

• By reducing prices

• By selling products

• By hiring more staff

• By offering shares to multiple investors

What is the main advantage for an investor in buying shares of a company?

• Receiving a portion of the company's profits

• Getting free products from the company

• Avoiding any financial risk

• Gaining full control of the company

What does it mean to 'cut a business into pieces' in terms of investment?

• Dividing the business into different departments

• Closing down parts of the business

• Selling parts of the business to competitors

• Offering shares to investors