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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Solar Power Industry

Solar Power Industry

Q Samantha Smith, a friend of yours, was recently telling you about a company that her father is starting in the solar power industry. Samantha’s father is using a technology he developed, which has received favorable write-ups in several technical publications, and has been approached by two angel investors eager to invest. He’s also been offered a spot in a prestigious technology incubator, where he can maintain an office and a lab to work on his project. Samantha says that her dad has turned away the potential investors and is opting to work out of a shop on some property he owns, rather than move into an incubator. He’ll be able to fund the company from personal savings, at least for the first two years. Do you think Samantha’s dad is making good decisions? What are the pluses and minuses of the decisions he’s making?

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Yes, I think Samantha’s dad is making a good decision. For a business, internal funds must be used at first and it will be considered as personal financing. However, I would like to say that Samantha’s dad should be aware of both advantages and disadvantages of his decision before making a final decision. The plus of this decision is that the internal funding can be considered as the best resource of personal financing and minuses of the decision is that it is not the right kind of way to lose