Assume That You Are a Financial Manager Of Medium

Assume that you ar a financial manager of median(a) sized keep company. Explore the possibilities of generating the opposite sources of capital at funfair rate. A company may burn stack funds for different purposes depending on the time periods ranging from very scant(p) to fairly bulky duration. The total amount of financial unavoidably of a company depends on the nature and size of the business. The kitchen range of raising funds depends on the sources from which funds may be available. The business forms of fillet of sole proprietor and partnership slang exceptional opportunities for raising funds. They keister pay their business by the following means :- ? coronation of own savings ? education loans from friends and relatives ?Arranging advances from commercial banks ?Borrowing from finance companies Companies can remonstrate Finance by a fall of Methods. To Raise long-run and Medium-Term Capital, they have the following options:- fare of Sh ars It is the well-nigh important method. The financial obligation of sh atomic number 18holders is limited to the face value of shares, and they are also considerably transferable. A private company can non request the general earth to subscribe for its share capital and its shares are also not freely transferable. But for public limited companies in that respect are no such restrictions.

There are two types of shares :- ? honor shares :- the rate of dividend on these shares depends on the meshing available and the adroitness of directors. Hence, there is no fixed lading on the company. severally share carries one vote. ?Preference shares :- d! ividend is due on these shares at a fixed rate and is due only if there are profits. Hence, there is no mandatory burden on the companys finances. Such shares do not divulge voting rights. Issue of Debentures Companies generally have powers to borrow and raise loans by number debentures. The rate of interest payable on debentures is fixed at the time of issue and are corned by a charge on the property or assets of the company, which provide the...If you pauperization to get a full essay, clubhouse it on our website: OrderCustomPaper.com

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