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Robbo

posted on 8th May 05 at 17:56

quote:
Originally posted by Charlene
Cheers :D

I have more questions if you dont mind helping again :P

Why wouldn't the following happen,



  1. A sole proprietor issue shares in her or his company to finance an increase in working capital
  2. A partnership issue debentures on the stock exchange
  3. A public limited company neogtiates a £250 loan from its bankers



    Also

    Explain why large businesse are likely to have a greater choice of finance than small businesses


A - If shes a sole proprietor then shes a Ltd company not a plc so she cannot publically trade shares therefore she is unlikely to receive much moeny from them (Ltd co shares usually go around company members or families etc)

B - Debentures are not traded on the Stock Exchange

C - that would NEVER happen so fk knows :lol:

Large businesses are generally more likely to have more cash behind them, a larger customer base and reputation and are simply more attractive to a bank :)


Charlene

posted on 8th May 05 at 16:37

Well its a better guess then what i could of thought of


Ian

posted on 8th May 05 at 16:36

Guessing by the way!


Charlene

posted on 8th May 05 at 16:31

Cheers


Ian

posted on 8th May 05 at 16:28

PLC gets money from shareholders and not he bank?

Large business more choice of finance as they've more to secure?


Charlene

posted on 8th May 05 at 16:09

Anyone :look:


Charlene

posted on 8th May 05 at 10:46

Cheers :D

I have more questions if you dont mind helping again :P

Why wouldn't the following happen,



  1. A sole proprietor issue shares in her or his company to finance an increase in working capital
  2. A partnership issue debentures on the stock exchange
  3. A public limited company neogtiates a £250 loan from its bankers



    Also

    Explain why large businesse are likely to have a greater choice of finance than small businesses


Robbo

posted on 8th May 05 at 10:31

;)


Marc

posted on 8th May 05 at 10:30

I knew youre Uncle Robbo would see you right :P


Robbo

posted on 8th May 05 at 09:28

The company can issue more shares, people will pay money for them that the company can use to grow the business, in the F example it would be issue of share capital in the new subsidiary

[Edited on 08-05-2005 by Robbo]


Charlene

posted on 8th May 05 at 09:27

Although what is meant be a issue of share capital?


Robbo

posted on 8th May 05 at 09:26

:S


Charlene

posted on 8th May 05 at 09:25

Cheers that what i needed :D :thumbs:

Well i was looking for a serious reply so thats why i used GC


Robbo

posted on 8th May 05 at 09:21

Off Day :|

If your talking proper financing ie loan etc then:

A Mortgage
B Loan
C Loan
D Issue of Share capital
E Loan
F Issue of Share capital

Or really if they want to do all that they should be profitable and be able to use their own money but failing that use the above


Charlene

posted on 8th May 05 at 09:13

I need some help answering these questions for my brother

A business has the following finance needs. Explain what type of finance would be most suitable for:


  1. New premises
  2. a computer network
  3. an increase in puirchases of components
  4. the take over from another company
  5. an increase in the number of workers employed
  6. the setting up of a new subsidiary company


    Im no good with these questions :lol:

    Thanks :thumbs: