Question

on the basis of the sources of business finance, suggest the suitable options to solve the financial problems of the restaurant.

Answer 1

On the basis of the sources of business finance, options like business loans, investor funding, debentures, etc., can be relied upon to solve the financial problems of the restaurant.

Explanation:

• In order to bring a restaurant business out of a financial crisis by opting to seek help from sources of business finance, the first and the most reliable option would be to go for a business loan either from a nationalized bank or from a private bank.

• Finding an investor who would fund the business for a partnership in the business or a percentage of the total profit the business gains is another option to bring the business out of the crisis.

• Debentures are another form of loan that can be taken from private companies. It can be looked at as an option if the first two options aren't feasible.