Apart from selling of shares, explain five other sources of finance for public limited company. (10mks)
- Loans – borrowing from banks and other financial institutions.
- Ploughing back profit/Retained profit – profit not shared but used to expand/ run the business.
- Trade credit/buying goods on credit so as to pay at a later date.
- Hire purchases – buying goods and paying them on installment basis.
- Debentures to the members of the public.
- Sale of idle assets – to run business activities/ meet its financial obligations.
- Bank overdraft –To finance short term obligations.
Post Views: 36
people found this article helpful. What about you?
