MEANING, NATURE AND SIGNIFICANCE OF BUSINESS FINANCE

Jun 21st, 2015
Studypool Tutor
Price: $10 USD

Tutor description

INTRODUCTION: This topic provides an overview of the various sources from where funds can be procured for starting as also for running a business. It also discusses the advantages and limitations of various sources and points out the factors that determine the choice of a suitable source of business finance.

Word Count: 7243
Showing Page: 1/17
SOURCES OF BUSINESS FINANCEINTRODUCTION*MEANING, NATURE AND SIGNIFICANCE OF BUSINESS FINANCE*(a) Fixed capital requirements(b) Working Capital requirementsCLASSIFICATION OF SOURCES OF FUNDS*Period Basis Ownership BasisSource of Generation BasisSOURCES OF FINANCE1.Retained Earnings#2. Trade Credit#3 Factoring#4 Lease Financing#5 Public Deposits#6 Commercial Paper#7 Issue of Shares(a) Equity Shares(b) Preference SharesTypes of Preference Shares 1. Cumulative and Non-Cumulative:2. Participating and Non-Participating3. Convertible and Non-Convertible8 DebenturesTypes of Debentures 1. Secured and Unsecured: 2. Registered and Bearer: 3. Convertible and Non-Convertible:4. First and Second:9 Commercial Banks10 Financial InstitutionsINTERNATIONAL FINANCING(i) Commercial Banks(ii) International Agencies and Development Banks(iii) International Capital Markets(a) Global Depository Receipts (GDRs):(b) American Depository Receipts (ADRs):(c) Foreign Currency Convertible Bonds (FCCBs):FACTORS AFFECTING THE CHOICE OF THE SOURCE OF FUNDS(i) Cost: (ii) Financial strength and stability of operations: (iii) Form of organisation and legal status:(iv) Purpose and time period(v) Risk profile:(vi) Control:(vii) Effect on credit worthiness:(viii) Flexibility and ease(ix) Tax benefits: CONCLUSIONSOURCES OF BUSINESS FINANCEINTRODUCTIONThis topic provides an overview of the various sources from where funds can be p

Review from student

Studypool Student
" Thanks, good work "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors