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What are the advantages of raising extra capital from shareholders?
Wiki User
∙ 13y ago
The extra capital does not have interest charges and it doesn't to be repaid to the shareholders because it is a permanent source of finance to the business.
Raising capital is a low financial risk to the business therefore the business assets are not used as security for payment.
Raising extra capital is also cheaper than taking a financial loan.
Shey
Wiki User
∙ 13y ago
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