Business Studies, asked by siddhantsingh2204, 6 months ago

Neha started small sweet shop in Delhi under the name mithaai wala over-the-ear han business group manifold by the world of mouth recently export order although the exporter has promised to make some advance payment but Neha will still need some more funds to meet the working capital requirement suggest any two source through which Neha can raise fund to meet working capital requirement give two merits of each of suggested source​

Answers

Answered by mano3383
0

Answer:

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Explanation:

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Answered by madeducators11
2

Sources For Raising funds are :-

Explanation:

1. Trade Credit - It is a short-term credit granted by suppliers of goods and services in the normal cycle of business, to a buyer in order to increase sales.

Merits:-

a) This source of raising funds is indirectly Automatic and is more easy than the other sources.

b) There is no such paper work as this type of source does not require any negotiation or formal agreement.

2. Loan From Commercial Bank - A commercial bank is a financial institution which accepts deposits from the public and provides loans for the initiatives of consumption and investment to make profit.

Merits:-

a) When a person receives a bank loan, a bank would never provide a set of rules telling how you spend the money. So taking a loan from Commercial bank is more flexible in Nature.

b) In this A person gets a very low Interest Rate which decreases the burden of repaying the Bank loan.

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