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.
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