Business

3.1.0 Source of pay ? Firms need _____Capital___ to nonplus wages, to buy raw materials, to put up for promotional activities, to fund inquiry and development, to enable them to invest in new machinery and equipment and to enable firms to grow. ? assorted ___________________________ these activities argon needed. o virtually will be ___internal___________ (from inwardly the smart set itself) o a couple of(prenominal) poop be ____external__________ (outside the firm) 3.1.1 Forms of finance ? extraneous finance (financing from outside the company): o ________loan slap-up_______: Any loan capital borrowed from a swan is mow to ___ pursual payment _____________ on a regular (usually monthly) basis. Repayments must as well be maintained as agreed by the lodge and the firm. Loans can both be _______________________. ? Assessment of bank loans ? all told firms can single-valued function this source of finance. ? Smaller firms, which are perceived to be higher(prenominal) risk, will normally be charged higher interest rates. ? Lenders are unlikely to provide unlatched loans to firms that are shrimpy and/or higher risk.

o ____________: is a long-term liability, which companies can issue (this source of finance is non available for unincorporated origines). It may, or may not, be secured on the value of any business assets. The debentures pay the holder a _________________ annually and the debentures are ___________ - the company will repay the beat of each certificate at the redemption date (which is bone on the certificate). The debentures can be traded as if they were shares. Debentures, unlike shares, absolve no voting rights at the AGM. ? Assessment of debentures ? This source of finance is only available to ____________ businesses. ? use up payments are _______ and, therefore, may menstruation a burden on the firms ______________....If you want to get a full essay, order it on our website: Ordercustompaper.com

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