Charlene
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Registered: 29th Sep 04
Location: Darlington
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I need some help answering these questions for my brother
A business has the following finance needs. Explain what type of finance would be most suitable for:
- New premises
- a computer network
- an increase in puirchases of components
- the take over from another company
- an increase in the number of workers employed
- the setting up of a new subsidiary company
Im no good with these questions
Thanks
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Robbo
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Registered: 6th Aug 02
Location: London
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Off Day
If your talking proper financing ie loan etc then:
A Mortgage
B Loan
C Loan
D Issue of Share capital
E Loan
F Issue of Share capital
Or really if they want to do all that they should be profitable and be able to use their own money but failing that use the above
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Charlene
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Registered: 29th Sep 04
Location: Darlington
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Cheers that what i needed
Well i was looking for a serious reply so thats why i used GC
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Robbo
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Registered: 6th Aug 02
Location: London
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:S
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Charlene
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Registered: 29th Sep 04
Location: Darlington
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Although what is meant be a issue of share capital?
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Robbo
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Registered: 6th Aug 02
Location: London
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The company can issue more shares, people will pay money for them that the company can use to grow the business, in the F example it would be issue of share capital in the new subsidiary
[Edited on 08-05-2005 by Robbo]
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Marc
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Registered: 11th Aug 02
Location: York
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I knew youre Uncle Robbo would see you right
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Robbo
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Charlene
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Registered: 29th Sep 04
Location: Darlington
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Cheers
I have more questions if you dont mind helping again
Why wouldn't the following happen,
- A sole proprietor issue shares in her or his company to finance an increase in working capital
- A partnership issue debentures on the stock exchange
- A public limited company neogtiates a £250 loan from its bankers
Also
Explain why large businesse are likely to have a greater choice of finance than small businesses
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Charlene
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Registered: 29th Sep 04
Location: Darlington
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Anyone
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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PLC gets money from shareholders and not he bank?
Large business more choice of finance as they've more to secure?
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Charlene
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Registered: 29th Sep 04
Location: Darlington
User status: Offline
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Cheers
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Ian
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Registered: 28th Aug 99
Location: Liverpool
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Guessing by the way!
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Charlene
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Registered: 29th Sep 04
Location: Darlington
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Well its a better guess then what i could of thought of
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Robbo
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Registered: 6th Aug 02
Location: London
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quote: Originally posted by Charlene
Cheers
I have more questions if you dont mind helping again
Why wouldn't the following happen,
- A sole proprietor issue shares in her or his company to finance an increase in working capital
- A partnership issue debentures on the stock exchange
- A public limited company neogtiates a £250 loan from its bankers
Also
Explain why large businesse are likely to have a greater choice of finance than small businesses
A - If shes a sole proprietor then shes a Ltd company not a plc so she cannot publically trade shares therefore she is unlikely to receive much moeny from them (Ltd co shares usually go around company members or families etc)
B - Debentures are not traded on the Stock Exchange
C - that would NEVER happen so fk knows
Large businesses are generally more likely to have more cash behind them, a larger customer base and reputation and are simply more attractive to a bank
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