D1

Refer to Chapter 9 on page 115 and then answer the following questions:

You have decided to open up a medical practice in Fort Lauderdale, Florida to lease to surgeons to perform surgeries.  There are 3 partners (including yourself).  Consider the capital structure required to start-up your business and answer the following questions:

  Will you mostly take out loans (debt) to finance your business, look for investors (equity), use savings, etc.  Justify your answer with resources (textbook or outside resources).

  List at least 2 potential risks the practice will face due to your capitalization decision