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Why different sources of finance is needed for capital expenditure?
Wiki User
∙ 9y ago
Different sources of capital has different percentage of interest amount payable so optimum capital mixture required to finance business.
Due to high risk and high interest rate associated with different source of financing so optimum capital structure is required to get maximum benefit.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoDifferent sources of capital has different percentage of interest amount payable so optimum capital mixture required to finance business.
Wiki User
∙ 9y agoDue to high risk and high interest rate associated with different source of financing so optimum capital structure is required to get maximum benefit.
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Why different sources of finance might be neededrevenue expenditure and capital expenditure?
this is beacuse revenue expenditure is for a short period of time therefore it wouldnt make sense for it to get a long term loan neither would it make sense it capital expenditure which is long term uses a short term method of finance
Assess and compare the costs of different sources of finance?
Assess and compare the different sources of finance
What are the sources of business finance?
Land, Labor, Capital and Organization.
Why different sources of finance have different cost?
why different sources of financing have different costs
Why different sources of finance have different costs?
why different sources of financing have different costs
Long term finance sources?
Following are long term finance source:Bonds issueDebenturesIssuance of share capital
Sources of finance for fixed assets and working capital of a business?
What is fixed capital in real terms? This fixed capital is money that the company possesses but does not have in cash. This can be tapped into by the sale of these fixed asset items but usually, fixed asset items are vital for the running of businesses. Working capital Working capital is completely different from fixed capital and it has a different relevance when looking at a business. Working capital is the moment on a balance sheet that is constantly moving. These are all short term investments and the money is said to be working in the way that it is generating more money and more capital to be put back into the business.
What is the sources of working capital?
Also known as capital employed its the total long term finance injected in the business i.e. Long term debt + equity
What is the difference between internal and external sources of finance?
Internal sources is finance which comes mainly frown own funds, profits and depreciation The main internal sources of finance for sole proprietors are as follows; · Owner's funds · Selling personal assets · Profits · Depreciation External sources is capital obtained from financial institutions, such as banks, and from individuals willing to provide finance. The main external sources of finance for sole proprietors are as follows; · Bank loans · Mortgage loans · Grants and loans · Hiring and Leasing
Sources of Finance in financial management?
plz tell me sources of finance
What has the author Arthur Rowland Burnstan written?
Arthur Rowland Burnstan has written: 'Sources of capital' -- subject(s): Corporations, Finance
What does source of finance mean?
sources of finance is where a business can get money from. there are two types where money can be found internal and external. internal are things like the owner's capital and external are things like loans.
