Mansi with her thirty friends wants to start large scale business. Her business cycle is long and indulging the activities like arranging raw material, transform into semi-finished goods and then finished goods. So they started Joint Stock Company. As theirs is flourishing business, they equally observe with best quality goods. They are also planning for exporting their products too in near future. So, she has taken advice from financial advisor from where to collect finance as they want for long run. She also informed to the financial advisor that she want a permanent source of owned funds which does not create any charge on assets nor creates fixed burden on the company. [1] On the basis of above paragraph; which source of finance the financial advisor must have advised her to raise the finance. [2] state any two merits of this source of finance.
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Explanation:
Mansi with her thirty friends wants to start large scale business. Her business cycle is long and indulging the activities like arranging raw material, transform into semi-finished goods and then finished goods. So they started Joint Stock Company. As theirs is flourishing business, they equally observe with best quality goods. They are also planning for exporting their products too in near future. So, she has taken advice from financial advisor from where to collect finance as they want for long run. She also informed to the financial advisor that she want a permanent source of owned funds which does not create any charge on assets nor creates fixed burden on the company. [1] On the basis of above paragraph; which source of finance the financial advisor must have advised her to raise the finance. [2] state any two merits of this source of finance.