Six sources of finance for a new business venture.
- Bank lending
Borrowings from banks are an important source of finance to companies. Bank lending is still mainly short term, although medium-term lending is quite common these days.
- Leasing
A lease is an agreement between two parties, the "lessor" and the "lessee". The lessor owns a capital asset, but allows the lessee to use it. The lessee makes payments under .the terms of the lease to the lessor, for a specified period of time.
- Retained earnings
For any company, the amount of earnings retained within the business has a direct impact on the amount of dividends. Profit re-invested as retained earnings is profit that could have been paid as a dividend.
- Ordinary (equity) shares
Ordinary shares are issued to the owners of a company.
- Grants from private foundations and non-governmental organizations.
Government funding especially for youth projects.
- Personal savings,
possibly from initial employment i.e if the business venture is a sole proprietorship or partnership
marto answered the question on January 30, 2019 at 07:25
- Explain the meaning of the term “entrepreneur” (Solved)
Explain the meaning of the term “entrepreneur”
Date posted: January 30, 2019. Answers (1)
- Illustrate five strategies that an entrepreneur could adopt in order to survive bankruptcy .(Solved)
Illustrate five strategies that an entrepreneur could adopt in order to survive bankruptcy.
Date posted: January 30, 2019. Answers (1)
- Explain ten warning signs that would indicate the possibility of an entrepreneur becoming bankrupt (Solved)
Explain ten warning signs that would indicate the possibility of an entrepreneur becoming bankrupt
Date posted: January 29, 2019. Answers (1)
- Explain five myths on entrepreneurship (Solved)
Explain five myths on entrepreneurship
Date posted: January 29, 2019. Answers (1)
- Entrepreneurs are faced with challenges of cultural diversity in their businesses. Discuss four ways that could be used to overcome challenges of cultural diversity in...(Solved)
Entrepreneurs are faced with challenges of cultural diversity in their businesses. Discuss four ways that could be used to overcome challenges of cultural diversity in business.
Date posted: January 29, 2019. Answers (1)
- Explain the characteristics of the entrepreneurial mobility that cut across the location and occupations(Solved)
Explain the characteristics of the entrepreneurial mobility that cut across the location and occupations.
Date posted: November 26, 2018. Answers (1)
- Explain factors to consider when conducting user study(Solved)
Explain factors to consider when conducting user study.
Date posted: September 27, 2018. Answers (1)
- What are the causes of conflict of interest between managers and shareholders?
(Solved)
What are the causes of conflict of interest between managers and shareholders?
Date posted: August 16, 2018. Answers (1)
- Outline the possible indications of irregularities in auditing.(Solved)
Outline the possible indications of irregularities in auditing.
Date posted: August 15, 2018. Answers (1)
- Outline reasons why management needs complete and accurate books of accounts.
(Solved)
Outline reasons why management needs complete and accurate books of accounts.
Date posted: August 15, 2018. Answers (1)
- Outline six measures that an office manager may take to ensure employees cooperation when carrying out an organization method (Solved)
Outline six measures that an office manager may take to ensure employees cooperation when carrying out an organization method
Date posted: August 3, 2018. Answers (1)
- Discuss the various types of catalogue stating the advantages and disadvantages of each(Solved)
Discuss the various types of catalogue stating the advantages and disadvantages of each.
Date posted: July 25, 2018. Answers (1)
- Outline the consequences of a poorly structured business Opportunity(Solved)
Outline the consequences of a poorly structured business Opportunity.
Date posted: June 18, 2018. Answers (1)
- Outline the benefits of a well structured Business Opportunity(Solved)
Outline the benefits of a well structured Business Opportunity.
Date posted: June 18, 2018. Answers (1)
- Outline the guidelines for choosing a good business Opportunity.(Solved)
Outline the guidelines for
choosing a good
business Opportunity.
Date posted: June 18, 2018. Answers (1)
- Outline entrepreneurial process for a business opportunity(Solved)
Outline entrepreneurial process for a business opportunity.
Date posted: June 18, 2018. Answers (1)
- Outline some of the ways of re-investing in a business(Solved)
Outline some of the ways of re-investing in a business
Date posted: June 15, 2018. Answers (1)
- How does networking helps in marketing segment?
(Solved)
How does networking helps in marketing segment?
Date posted: April 23, 2018. Answers (1)