Question

On the basis of sources of business finance suggest suitable options to solve financial problems of a restaurant

Answer 1

Business Finance:

• There are multiple sources of funds that a business can avail depending on the nature, size, scope, etc of the business.
• It also depends on cost, availability, risk, controlling power, etc of the source of funds.
• However, some of most common and easy sources of funds are (A) own source or owner’s capital wherein the owner or partners of business introduce capital into business from their personal sources.
• (B) a loan from a bank or financial institution wherein money is lent for a fixed rate of interest.
• The loan is generally given on the basis of guarantee from the loan applicant’s personal property or on the business.

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Define business finance​

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