THE BALANCE SHEET POCKET BOOK phần 2 potx

THE BUSINESS FINANCIAL MODEL

SOURCE OF FUNDS

Most businesses need long-term finance, ie: money that is being invested in the

business on a long-term basis, to allow it to achieve its aims.

There are three categories of long-term finance:

● Share capital

● Loan capital

● Retained profits

Each of these has different investor expectations and implications for the way

the business is run.

Most companies will choose to have a mix of the three types.

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