finance 2222

Usually most companies begin as private company, the owners have to put up the capital themselves or borrow from friends or a bank (maybe specializing in venture capital). The advantage of the private company is that is a legal separate from its owners and just the amount capital is liable.
On the contrary the people who do business like a partnership has unlimited liability for all debts, so they can be declared bankrupt. This is the most important disadvantage of this way of business if you cannot really pay your debts.
The unsuccessful business haven’t too much options to finance, they may have to sell their possessions (the assets are liquidated) in order to pay their debts.
Inside the successfully business there are so many ways of finance, it depends on the size of the company, if the enterprise is small and new can join to “over-the-counter” markets such as the Nasdaq in New York. A growing company can apply to a stock exchange to become a public limited company.
There are several common types of business financing options:
Commercial loans are attractive because they don't require entrepreneurs to turn over equity or company control. But servicing debt can drain a young company with limited cash flow. New companies may not even have access to bank loans if they have no operating history and no collateral to secure the loan.
Equipment lease financing is an option for many cash-starved businesses. Equipment leases give you access to many types of equipment without tying up your cash or credit lines.
Cash advances from credit cards are an easy and quick way to gain access to cash. But as a long-term financing method, they can be expensive.

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