education

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

My name is seyi, the main aim of creating this platform is to help users get information like school updates, electrical engineering topics, school project and many more for free

Related Articles

Leave a Reply

Back to top button