How is Fund the bloodline of a successful business.

Explain various reasonable means from where a business can source fund.

Fund is the bloodline of a successful business

  1. Savings: Business enterprises, especially sole proprietorship and partnership, can raise capital from their personal or owner’s savings.
  2. Borrowing: Business enterprises, especially the small ones, can borrow money from friends and relatives.
  3. Loans And Overdraft From Banks: Loans and overdraft can be obtained from commercial or development banks, especially by co-operatives and limited liability companies.
  4. Trade Credit: Raw materials can be purchased by the company on credit.
  5. Equipment Leasing: Equipment can be leased out by companies in order to raise capital.
  6. Retained Profit: The profit made by the company can be set aside or ploughed back as working capital.
  7. Sales of Shares: Business enterprise can raise capital by issuing shares for public subscription.
  8. By Debenture: These are long terms loans obtained from the general public at a fixed interest.

Oluwamuyide Peter

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