Assume That You Are a Financial Manager Of Medium

Assume that you ar a financial manager of specialty sized keep company. Explore the possibilities of generating the opposite sources of capital at funfair rate. A company may burn follow out funds for different purposes depending on the time periods ranging from very niggling to fairly bulky duration. The total amount of financial inescapably of a company depends on the nature and size of the business. The grasp of raising funds depends on the sources from which funds may be available. The business forms of fillet of sole proprietor and partnership induce exceptional opportunities for raising funds. They keister pay their business by the following means :- ? coronation of own savings ? meridian loans from friends and relatives ?Arranging advances from commercial banks ?Borrowing from finance companies Companies can turn up Finance by a fall of Methods. To Raise long-term and Medium-Term Capital, they have the following options:- bribe of Sh ars It is the well-nigh important method. The indebtedness of sh argonholders is limited to the face value of shares, and they are also good transferable. A private company cannot request the general world to subscribe for its share capital and its shares are also not freely transferable. But for public limited companies on that point are no such restrictions.

There are two types of shares :- ? uprightness shares :- the rate of dividend on these shares depends on the meshing available and the discernment of directors. Hence, there is no fixed lading on the company. for each one share carries one vote. ?Prefe rence shares :- dividend is due on these sh! ares at a fixed rate and is due only if there are profits. Hence, there is no mandatory burden on the companys finances. Such shares do not divulge voting rights. Issue of Debentures Companies generally have powers to borrow and raise loans by release debentures. The rate of interest payable on debentures is fixed at the time of issue and are corned by a charge on the property or assets of the company, which provide the...If you motive to get a full essay, clubhouse it on our website: OrderCustomPaper.com

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