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disadvantages of debt finance it is a conditional finance that is it is not invested along with any approval of lender debt finance whether used in
advantages of using debt finance interest on debt is a tax permit able expense and as that it is reduced via the tax allowance the cost of debt is
example of debt financean exampleinterest 10 tax rate 30the effective cost of debt interest interest rate 1 - t 101-030 7consider companies a and
commercial bank for short term loanspurpose why commercial banks prefer to lend short term loansa long-term forecasts are not only difficult although
calculate total number of ordinary shares examplecompany xyz ltd has sold 10000 ordinary shares of shs30 as partly called up plus 20000 shs45
requirements for raising loanrequirements for raising loan are as followa subsidiaries of the company and historyb qualifications ages and names of
debt financedebt finance is a fixed return finance like the cost as interest is fixed on the par value as face value of debt this is ideal to require
conditions under which loans are ideala whenever the companys gearing level is low as the level of outstanding loans is lowb the companys future cash
example of capital structure of a companyexamplecompany xyz restricted has the given capital structure as 10000 sh10 ordinary shares10000 sh20
classification of preference share capitali redeemable classredeemable preferential shares are bought back via issue company after minimum redemption
benefits ordinary share capital - financingbenefits of using ordinary share capital in the financingthey facilitate projects particularly long-term
reasons for why ordinary share capital is attractivereasons for why ordinary share capital is attractive despite to be riskyshares are used as
rights of ordinary shareholdersa right to vote choose bod purchasesales of assetsb influence decisions as right to residual assets claim right to
private limited companiesthese are not permitted to advertise their shares so like to attract public money and so that they sell their shares
public limited companiesthese are joint stock companies that have sold shares to specific public and thus have attracted public money in form of
revenue reserves - retained earningsthese are undistributed earnings those reserves are retained for the given reasons likea to create up for the
holding companysuch holds more than a half of the equity share capital of other company or is a member and or controls a big percentage of directors
eye field - vertebrate eyethe development of eyes starts with evagination of the lateral wall of the forebrain one on each side which make the optic
disadvantage of joint stock companies difficult to reconstruct the capital many formalities in forming the company heavy initial capital outlay loss
advantage of joint stock companies the company can own assets and incur liabilities on its own accord perpetual existence as or going to relate that
joint stock companies - types of business organisationsinitiators contribute to the capital support of those companies via the purchase of shares of
types of partners1 general partners -unlimited active and liability in participation in partnership activities2 limited partners - limited liability
partnerships - types of business organisationsdefinationthe relationship that exists with persons carrying on a business in common by a view of
advantage and disadvantage of sole proprietorshipadvantage of sole proprietorship high supervision of employees income motivate owner sole trade
characteristics of sole proprietorshipa it caters for customers personal attentionb accounts do not must be auditedc limited to such finances like