What are at least two (2) actions that Trevose Fitness Center (TFC) could take in order to raise capital that will, in turn, enable it to achieve its expansion goals? 

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There are two options available for raising capital to allow Trevose Fitness Center to reach its expansion goals: debt financing and equity financing.

In debt financing, you take out a loan either from a bank or other source of money in return for the repayment of the loan. The loan is repaid with interest over a set period. TFC has the ability to borrow large amounts of money, but the disadvantage is that default on payment can lead to legal action.

TFC shares can be sold to investors for equity financing. The funds are then used to expand the company. This approach does not require immediate repayment as there are no fixed payments obligations attached; furthermore dilution of ownership is minimal since new shareholders participate only in future profits generated by TFC’s activities and do not have voting rights associated with their investment until a certain point. The main disadvantages of this option include higher costs due to paying dividends/distributions as well as fewer tax benefits compared with debt financing.

You can see that both equity financing and debt are options to increase capital in order to expand the Trevose Fitness Center. Each option comes with its advantages and disadvantages, so you should carefully weigh your options before making major decisions.

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