State the advantages of share capital as a type long term financing.

      

State the advantages of share capital as a type long term financing.

  

Answers


Lellah

1. Being a permanent finance the business can invest it in long term ventures without inconveniences of paying it back.
2. Shareholders can contribute valuable ideas during meetings.
3. A company can raise large amounts of finance especially if it’s quoted in the stock exchange.
4. Ordinary shares form the base upon which other forms of finance can be raised.
5. The price of the shares in the stock exchange is an indicator of the public perception on the company.
Lellah answered the question on November 8, 2021 at 07:31


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