What are the ways of raising finance that will not result in the owners lost control over the company, without increase gearing levels significantly and no additional funds provided by the owners itself?
Thankss Sir
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7y ago#1I can only assume that you have been set this as a test question because if it was a question in your Revision Kit you would presumably have the answer :-)
The most obvious ways would be to sell any unused assets or for the sale and lease-back of some non-current assets (although the second of these would effectively increase gearing to a degree).
Depending on the exact wording of the question, you could include using retained earnings and therefore paying lower dividends. This would not involve the owners directly paying in more money but effectively they would be because they would be losing dividends they would otherwise have received.
ya, this is what I am assuming.
I am thinking whether is tht possibly there is any ways can raise finance not against ALL of this 3 conditions at the end?
7y ago#3No - not other that the sort of things I suggested in my first reply. (Selling unused assets does not affect any of the three conditions).
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