This article throws light upon the top twelve methods used for raising finance for a company. The methods are: 1. Shares 2. Debentures 3. Public Deposits 4. Managing Agents 5. Loans from Banks 6. Ploughing Back of Earnings 7. Hire Purchase 8. Leasing 9. Profit Flowback 10. Credit Facilities 11. Trade Credit 12. Short Term Loans. Method # 1. Shares: [...]
After reading this article you will learn about:- 1. Meaning of Capital Investment Decisions 2. Significance of Capital Investment Decisions 3. Techniques used. Meaning of Capital Investment Decisions: Investment means laying out the money (also known as outlay) on an activity or a project with the expectation of some benefit. In an enterprise, expenditure may be either: (a) To carry [...]
This article throws light upon the eight important requisites of a sound capital plan. The requisites are: 1. Estimates of Financial Needs 2. Flexibility 3. Optimum Use of Funds 4. Liquidity 5. Mode of Finance 6. Simplicity 7. Planning Foresight 8. External Influences. Sound Capital Plan: Requisite # 1. Estimates of Financial Needs: Promoters must have accurate estimates of financial [...]