Question

define owners found write down its advantages and dis advantages​

Answer 1

Answer:

Owner's funds mean funds which are procured by the owners of a business, which may be a sole entrepreneur or partners or shareholders of a business. It also includes profits which are reinvested in the business. ... Equity shares and retained earnings are the two important sources from where owner's funds can be obtained.

Advantages

*You will know exactly how much money is available to run your business and you will not have to spend time trying to secure other forms of funding from investors or banks.

*Self-financing your business gives you much more control than other finance options. It also means that you don't need to pay back or rely on outside investors or lenders, who could decide to withdraw their support at any time.

*You will retain full ownership of the business, which in turn means that you will receive 100 per cent of future profits.

*If you fund a business yourself, you will be forced to live within your means, only investing in business equipment and marketing when you need to. This can help you to prioritise your business expenditure and avoid excessive spending.

Disadvantages

*Using your own money to finance your business may put a strain on your family and personal life. You may not have enough money left over to cover your living costs. You should try to leave a contingency fund, in case you need extra money to see you through a difficult period.

*If your business were to fail, you could lose your home and other personal possessions.

*Many investors and venture capitalists can also provide mentoring and networking opportunities for you and your business - if you fund your business alone, you will have to develop your own contacts and mentoring opportunities.

Explanation:

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