BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Equity capital.
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Debt capital.
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Grant.
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Overdraft capital.
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Detailed explanation-1: -Owner’s Fund – This fund is financed by the company owners, also known as owner’s capital. The capital is raised by issuing preference shares, retained earnings, equity shares, etc. These are for long term capital funds which form a base for owners to obtain their right to control the firm’s management and operations.
Detailed explanation-2: -Venture capital generally comes from well-off investors, investment banks, and any other financial institutions. However, it does not always take a monetary form; it can also be provided in the form of technical or managerial expertise.
Detailed explanation-3: -She suggests that there are in fact 4 sources of capital: equity, debt, grants and sales/revenue. There are 3 types of equity for funding operations: Public Equity, External Private Equity and Internal Equity.
Detailed explanation-4: -Sources of working capital Long-term working capital sources include long-term loans, provision for depreciation, retained profits, debentures and share capital. Short-term working capital sources include dividend or tax provisions, cash credit, public deposits and others.