Assume That You Are a Financial Manager Of Medium

Assume that you ar a financial manager of medium sized keep company.
Explore the possibilities of generating the opposite sources of capital at funfair rate.

A company may burn down funds for different purposes depending on the time periods ranging from very short to fairly bulky duration. The total amount of financial needs of a company depends on the nature and size of the business. The scope of raising funds depends on the sources from which funds may be available. The business forms of fillet of sole proprietor and partnership have exceptional opportunities for raising funds. They keister pay their business by the following means :-
? coronation of own savings

?Raising loans from friends and relatives

?Arranging advances from commercial banks

?Borrowing from finance companies
Companies can Raise Finance by a fall of Methods. To Raise Long-Term and Medium-Term Capital, they have the following options:-
Issue of Sh ars
It is the well-nigh important method. The liability of sh areholders is limited to the face value of shares, and they are also easily transferable. A private company cannot request the general public to subscribe for its share capital and its shares are also not freely transferable. But for public limited companies there are no such restrictions.



There are two types of shares :-
?Equity shares :- the rate of dividend on these shares depends on the meshing available and the discretion of directors. Hence, there is no fixed lading on the company. Each share carries one vote.

?Preference shares :- dividend is due on these shares 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 issuing 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 want to get a full essay, clubhouse it on our website: Ordercustompaper.com



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