ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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which businesses can use the sale of shares as a source of finance?
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Partnership
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Sole trader
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Private Limited Company
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Public Limited Company
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Explanation:
Detailed explanation-1: -Companies can raise funds from the public in exchange for a proportionate ownership stake in the company in the form of shares issued to investors who become shareholders after purchasing the shares.
Detailed explanation-2: -A ‘Public Limited Company’ also called PLC for short is legally allowed to sell its shares to the public.
Detailed explanation-3: -The three major sources of corporate financing are retained earnings, debt capital, and equity capital.
Detailed explanation-4: -What Is a Public Limited Company? Ordinary Shares. Cumulative Preference Shares. Preference Shares. Redeemable Shares. Non-Voting Shares. Bearer Shares.
There is 1 question to complete.