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    Sources of Business Finance

    Sources of business finance can be studied under the following heads: (1) Short Term Finance: Short-term finance is needed to fulfill the current needs of business. The current needs may include payment of taxes, salaries or wages, repair expenses, payment to creditor etc. The need for short...
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    Types and Examples of Leasing

    Leasing is an old method of financing which is now gaining popularity almost in whole world. Legally, the lease contract is not a sale of the object, but rather a sale of the usufruct (the right to use the object) for a specified period of time. Under leasing there are two parties one is the...
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    Functions of Business Finance

    Strength and soundness of business depends on the availability of finance and competency with which it is used. The abundance of finance can do wonders and its scarcity can ruin even a well established business. Finance increases the strength and viability of business. It increases the...
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    Functions of Stock Exchange

    Stock Exchange is the name of the market where instead of goods and services, stocks and shares are traded. Investors can sell or purchase shares, bonds or securities of different companies and corporate bodies. More often these purchases and sales are made through agent or brokers. Stock...
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    Merits and Demerits of Equity Finance

    Equity finance means the owner, own funds and finance. Usually small scale business such as partnerships and sole proprietorships are operated by their owner trough their own finance. Joint stock companies operate on the basis of equity shares, but their management is different from share...
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    Merits and Demerits of Debt Finance

    Debt financing means to borrow funds or to arrange for investments from external sources. Large scale businesses, organizations are not able to run all their affairs from their own capital so it is usual for them to take loans. The most prevalent example of this type of finance is the loans...
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