Theory question 106
Business OrganisationsSection B: answer three questions only from this section.
Explain five sources of finance that are available to a Public Limited Company.
Show the model answer
Model answer
Sale of shares (ordinary and preference) to the public
Debentures: long-term loans from the public at a fixed interest rate
Bank loans and overdrafts
Ploughed-back (retained) profits
Trade credit from suppliers
Hire purchase and equipment leasing
Bills of exchange
Loans from development banks and other financial institutions
Explanation
Five sources, each explained in a sentence.