Question

1
Explain the concept and any four ſeatures of a sourcc
which is a debt of a
company but company is not liable to sale their assets.
2
Explain the merits of a source which will let voting richts after 2 years if its​

Answer 1

Answer:

Explanation:

A company might raise new funds from the following sources:

· The capital markets:

i) new share issues, for example, by companies acquiring a stock market listing for the first time

ii) rights issues

· Loan stock

· Retained earnings

· Bank borrowing

· Government sources

· Business expansion scheme funds

· Venture capital

· Franchising.

Lending to smaller companies will be at a margin above the bank's base rate and at either a variable or fixed rate of interest. Lending on overdraft is always at a variable rate. A loan at a variable rate of interest is sometimes referred to as a floating rate loan. Longer-term bank loans will sometimes be available, usually for the purchase of property, where the loan takes the form of a mortgage. When a banker is asked by a business customer for a loan or overdraft facility, he will consider several factors, known commonly by the mnemonic PARTS.

- Purpose

- Amount

- Repayment

- Term

- Security