Please provide a response to this discussion

What conclusions about how the business is financed can be drawn from the composition of the organizations capital?

While examing the balance sheet, it looks as if the company is using both equity and debt financing. As the spreadsheet makes equity financing clear with the statement Shareholders Equity, the line LT Debt Net of Current Portion shows that the company used a line of credit with another institution, most likely a long-term loan.

Based upon the defined capital structure, assess the risks facing the entrepreneur responsible for this business because of the capital structure.

While analyzing the risks associated with this business, it appears that the business is in a good place financially. However, with any business venture, risks are always present. It appears there is a long-term loan associated with the business. So if profits go down, the risk is that the loan will have to be paid by other means. I see this falling on the shareholders. This may present too high a risk for shareholders, and they may sell their shares to other buyers. Depending on how much shareholders already own, buying more shares could put one person or entity from a minority shareholder to a majority shareholder. This would mean losing control of your own business.