Author:
Evaluation:
Published: 06.11.2005.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
  • Essays 'Finance For Business Expansion', 1.
  • Essays 'Finance For Business Expansion', 2.
  • Essays 'Finance For Business Expansion', 3.
Extract

A business faces three major issues when selecting an appropriate source of finance for a new project (Jay 2003):
1. Can the finance be raised from internal resources or will new finance have to be raised outside the business?
2. If finance needs to be raised externally, should it be debt or equity?
3. If external debt or equity is to be used, where should it be raised from and in which form?
EQUITY FINANCE.
There are two main sources of equity finance:
* Internally generated funds
* Share Issues
1. INTERNALLY GENERATED FUNDS
…

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