/Count 30 /Img42 105 0 R /Img1 64 0 R 9 0 obj 0000014031 00000 n /Img99 162 0 R /Img54 117 0 R
/Img11 74 0 R /Img85 148 0 R <> It is only the company form of organization, which is run on large scale basis. /Img68 131 0 R Access to sources of finance at the right time is a cornerstone for building better living conditions for farmers by ensuring profitability of their operations. /Img48 111 0 R
2 0 obj /Img25 88 0 R /Img52 115 0 R /Img100 163 0 R /Img39 102 0 R
/Img19 82 0 R /Img74 137 0 R 4944 24 0000000795 00000 n /Img61 124 0 R /Img70 133 0 R stream 12 0 obj << /Img91 154 0 R Sources of finance and relative costs are explored as well as the synthesis of financial tables. /Img129 192 0 R <<98AFDA083F2E5F498218DF11C49FE57A>]/Prev 730898/XRefStm 2658>> endobj /Img118 181 0 R endobj 20 0 obj 0000008711 00000 n /Img36 99 0 R 0000034350 00000 n /Img13 76 0 R A business faces three major issues when selecting an appropriate source of finance for a new project: 1. %PDF-1.4 /Kids [3 0 R 5 0 R 7 0 R 9 0 R 11 0 R 13 0 R 15 0 R 17 0 R 19 0 R 21 0 R 23 0 R 25 0 R 27 0 R 29 0 R 31 0 R 33 0 R 35 0 R 37 0 R 39 0 R 41 0 R 43 0 R 45 0 R 47 0 R 49 0 R 51 0 R 53 0 R 55 0 R 57 0 R 59 0 R 61 0 R ] /Img37 100 0 R /Img43 106 0 R /Img112 175 0 R There are basically three types of business organizations and for every sort of business organization sources of finance are really important to have. /Img120 183 0 R <> 14 0 obj /MediaBox [0 0 792 612] /Img76 139 0 R /XObject << 0000033736 00000 n /Img104 167 0 R 2. 0000023175 00000 n /Img8 71 0 R <> /Img81 144 0 R /Img122 185 0 R 0000035486 00000 n /Img66 129 0 R /Img59 122 0 R /Img82 145 0 R It requires … 15 0 obj >> <> 0000003527 00000 n <> /Img20 83 0 R 10 0 obj Sources of Finance The financing of your business is the most fundamental aspect of its management. 0000041066 00000 n endobj /Img49 112 0 R /Img95 158 0 R endobj They generally meet their fixed and working capital requirements from their owned capital. /Type /Page /Img75 138 0 R /Img63 126 0 R /Img58 121 0 R /Img32 95 0 R << 3 0 obj /Img101 164 0 R
/Img127 190 0 R /Img130 193 0 R
endobj endobj /Img119 182 0 R
xref /Img132 195 0 R /Img24 87 0 R /Img128 191 0 R
/Img35 98 0 R 0000036126 00000 n /Img17 80 0 R endobj /Img98 161 0 R endobj /Img3 66 0 R endobj 1 0 obj /Img116 179 0 R To find the financing their businesses demand, entrepreneurs must use as much
/Img7 70 0 R trailer /Img27 90 0 R /Img97 160 0 R /F1 1116 0 R /Filter /FlateDecode /Img45 108 0 R
%���� /Img40 103 0 R
/Img105 168 0 R /Img79 142 0 R /Img72 135 0 R <> 7 0 obj /Img114 177 0 R stream /Type /Pages 0000033170 00000 n /Parent 2 0 R 4944 0 obj <> endobj SOURCES OF BUSINESS FINANCE INTRODUCTION This chapter provides an overview of the various sources from where funds can be procured for starting as also for running a business. 0000027949 00000 n /Img4 67 0 R /Img121 184 0 R /Img109 172 0 R /Img44 107 0 R /Img111 174 0 R /Img10 73 0 R /Img51 114 0 R /Img28 91 0 R /Img110 173 0 R
/Img83 146 0 R
/Img30 93 0 R /Img15 78 0 R /Img67 130 0 R Read simple financial tables as sources of financial information. 0000065380 00000 n 11 0 obj /Img31 94 0 R /Img73 136 0 R %PDF-1.4 Although some traditional sources of funds now play a lesser role in small business finance than in the past, other sources—from large corporations and cus-tomers to international venture capitalists and state or local programs—are taking up the slack. /Img71 134 0 R /Img133 196 0 R <> 3. /Img78 141 0 R /Img34 97 0 R /Img12 75 0 R <> endobj /Img124 187 0 R 0000002658 00000 n 0000018925 00000 n /Img69 132 0 R The financing can happen at any stage of a business’s development. 4 0 obj %���� endobj Through these sources of finance, business meets its basic and day to day needs.
/Resources << >> 1 0 obj
0000000016 00000 n /PageLayout /OneColumn >> Exercise 7.1 Sources of finance Outdoor Living Ltd., an owner-managed company, has developed a new type of heating using solar power, and has financed the development stages from its own resources. /Img117 180 0 R /Img6 69 0 R /PageMode /UseNone x��}ˎl;rݼ��m*���r7��YW��H��0�Z�'���܌���^�|&ub%��`0r��G����>~�����?��ϵ� /Img108 171 0 R 0000003066 00000 n /Contents 4 0 R >> /Img9 72 0 R
/Img47 110 0 R >> /Img92 155 0 R /Img60 123 0 R Nor does it provide detailed descriptions of various sources of finance. /Img103 166 0 R Sole proprietorship and partnershipform of business organization are mostly run on small scale basis. /Img113 176 0 R 13.1 LEARNING OBJECTIVES By the end of this Unit, you should be able to do the following: 1. /Img125 188 0 R <> /Img80 143 0 R /Img86 149 0 R /Img107 170 0 R Finance is required for the purchase of different types of agricultural implements and high quality seeds, for making marketing arrangements, for storage etc. %PDF-1.4 %���� /Img26 89 0 R /Img94 157 0 R /Img88 151 0 R endobj /ProcSet [/PDF /Text ] /Img46 109 0 R 0000035229 00000 n /Img90 153 0 R 0000034612 00000 n x^���n7�����QD�g٤�.�uVEWE��Q8│.��/����F������y�� �wkJI������7������c����oۗ���F��_���~ڎ�?i�����ۏO�i���J ��W�� z����@{��p��m. I9t 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. << /Img93 156 0 R /Img84 147 0 R /Img14 77 0 R endobj startxref /Img77 140 0 R /Img102 165 0 R /Img55 118 0 R /Img18 81 0 R 0000003642 00000 n /Img21 84 0 R /Img57 120 0 R
<> /Pages 2 0 R /Img106 169 0 R /Img65 128 0 R 0
<> /Img64 127 0 R 0000055386 00000 n /Length 1532 /Img22 85 0 R /Img41 104 0 R endobj
Discriminate between various sources of funding, their advantages and disadvantages. /Img96 159 0 R 13 0 obj After studying this chapter, you should be able to: • state the meaning, nature and importance of business finance; • classify the various sources of business finance; • evaluate merits and limitations of various sources of finance; • identify the << /Img23 86 0 R <> 0000002915 00000 n /Img53 116 0 R
>>
2 0 obj 0000046318 00000 n These are well covered in manuals and textbooks. /Type /Catalog %%EOF /Img33 96 0 R Get the financing right and you will have a healthy business, positive cash flows and ultimately a profitable enterprise. 4967 0 obj <>stream /Font << Long-term financing means capital requirements for a period of more than 5 years to 10, 15, 20 years or maybe more depending on other factors. /Img62 125 0 R hV}P�u�=��xk�cl#ƃ�A�t�՜c,�e��S'� F;3좞����P���81E_oCPP��Lϻ%_�J˺˺��3�e�U��{���}�|?��= �@���� �� ���Z ��p $�1���a(� W�ITjt�$���VxL��5������ǒ����)��C�RY�W%��a��g�6��j#eˊ�~�a��bU�R��>�ˏ��U~H*��S����S DE��۰�i����;� �_���rO��/�hs4�O�O�(Dk_\����c��Ó,̄rGuJ�TЩ�[Y�:���4���(̉R��_�J���G��lB��;eCs��YV v�p9�'VR��J(�_Z#�Q5�9ؚ3b��vY���4�rJ�\�>�wy�7���Ll{�-v�S��n��3E�\����u�+ ��u��;�)O�[�M$V:� *�Y����ݩ3������ݒь�Σ���"�Wϒw%����1z�OiY�ԝ1#�]�o�lF���}D�-�\"weQVt t��>�)�z,�E!� rE�������K],4)ZK�l:�*p�鷑-K�����wF�i�\��sJ�6s�@�A��w�����F�����)|�'�!�92����qu#�5��>���g���-��؊��B3S�Q%?��K���Ƚ�� �Pӌe!VQ^S�J�NP~M~��ˋ>[�9T���X/���/^�P��a���Jn{��m�N�;�{J�;dvD�vW�Ts�.����۲"iA1#��;�5�+V��Mi�K�j[����r�6��%.�R�:?�S����U�+v[e@���Til��a�tA���N�8ҭ1�ZGo�v�ʞ���%�4m&��=e)���M0ܦ?WS���Ջ5v�c���5���þ�q_�G=�I�0����Ɏź�%����KAME�m�2��7����)5���� ����I���E��zH��CsO3E+���/�����n��.
/Img38 101 0 R endobj ����������?~���G������=>���G��3�����g-?��|��>^�K��4��ȣ|�ݞ�I�s���a��_>��z���Y��O^���±>�(�G��s��~��>���G�M����?��?����?�ӏ��?��������?�����?��*�m/�|�U_�ٟ��z�*?�)�/�������������G+�=��c���z}v�ɳg���lճ{�������?ϴW}%0�eA{֙���ɓW�Z>���lA���|2]�3b��\t>9��_�H=c���n��g�v�f��=Yg�[RH���)�I���;��j?�}�C�-���@?��)Cj҇뤈���B�����RDګHϧe_k>9�X�I�ߣ�����L1O���IW�sA��HK�;Zs�b�����D�i���V�@?>���� NH��~�$�rr��=�u�9�i]����V5��)�� ��/�>ur�Svì�"�U���g�%90�W��*"����(�%I�����"qO:���w��`A̢��~��=g^��B����9D�0��d�>9Q���1ς������~��q�Z����>0�Od�ZDCFm���߯�?��M��+g �']�����K'�. /Img126 189 0 R
/Img115 178 0 R
Capital expenditures in fixed assets like plant and machinery, land and building, etc of business are funded using long-term sources of finance. 2. Long-Term Sources of Finance. /Img29 92 0 R 8 0 obj /Img87 150 0 R /Img131 194 0 R Can the finance be raised from internal resources or will new finance have to be raised outside the business? /Img123 186 0 R /Img89 152 0 R /Img56 119 0 R >>
16 0 obj 0000019038 00000 n /Img2 65 0 R /Img5 68 0 R /Img16 79 0 R <> /Img50 113 0 R