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Source of finance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Source of finance

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by LMR1006.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • September 6, 2023 at 6:55 pm #691550
    iyamu
    Participant
    • Topics: 286
    • Replies: 171
    • ☆☆☆

    Sir in an exam question, it was asked to describe three ways to finance a business and state their advantages and disadvantages .

    In your lecture, you spoke about only two methods such Debt and Equity.

    You mentioned the short term finance such as bank overdraft, working capital, lease as short term finance etc

    while long term finance debt such as Bonds or debenture or loan note.

    For Equity you spoke about share capital (ordinary share), preference share and venture capital.

    My question now is, according to question above , will i be wrong if i mentioned loan note, equity and lease financing and state their advantages and disadvantages?

    September 6, 2023 at 9:02 pm #691567
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1476
    • ☆☆☆☆☆

    You would not be wrong if you mentioned loan note, equity and lease financing and stated their advantages and disadvantages

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