Sources of Business Finance

This is the cash that is generated by the business when it operates successfully

• Retained profits

• Share capital

• Angel investor

• Owner savings

A short-term source of finance from a bank that usually is only used in an emergency/when needed

• Overdraft

• Loan

• Share capital

• Credit card

ADRs full form

(a)  

what do the debenture holders get by investing in a company

(a)  

what kind of instruments ADRs and GDRs are

• shares

• debentures

in which type of business finance are debentures included?

• long term source

• short term source

• medium term source

which are the two limitations for equity shares

• issue of additional equity shares is generally more as compared to the cost of raising funds through other sources

• does not affect the control of equity shareholders

• investors who want steady income may not prefer equity shares equity shares get fluctuating returns

(a)   has established a number of financial institutions all over the country to provide finance to business organisations

_______ provide long term finance

• equity shares

• shareholders

• financial institution

• debentures

the preferential shareholders enjoy a preferential position over equity shareholders in two ways

• funds can be raised through equity issue without creating any charge on assets of the company

• receiving a fixed rate of dividend ,out of the net profits of the company before any dividend is declared for equity shareholders

• receiving their capital after the claims of the company's creditors have been settled ,at the time of liquidation.