Accounts 8

2) livid has used neat and a loan to finance her social club so far. White would have raise gunstocks of her own and invested in her railway line over time. White is the in wide-cut control of the business and funding the capital herself suits this as she doesnt have to share control. One of the main disadvantages with the capital that has been put back into the business would be that only a small amount of capital can be raised compared with if she got a loan or sold some shares in the business. But again, this would lead to loss of control which might non suit. White has also used a loan to fund the business so far. She may have needed the gold to continue trading or maybe to expand. The downside with getting a loan would be that no matter the financial health of the company, the money still has to be paid e very instalment. The get in the business would also be diminished as the company has to bear back money every instalment. The cover to a loan is that you can access a astronomic amount of money relatively easily. White could also trade in equity or shares in the business to raise money. White would have to switch the type of business from sole bargainer to a limited company. This would make access to finance much easier as they would receive an amount of money per share that they sell.

limit companies usually have to give a dividend to shareholders which would eat into dough but most importantly for White, the ownership of the company would be spread out. This could be good and bad. The good could come from having business expertise in the area which might become very useful. And all business decisions and risks would be equally shared also. some other upside would be that the company doesnt have to pay back the amount of money invested in full uniform a loan. The downside would be that White wouldnt have full control over the company anymore. And she could be kicked out of the company after all her hard work if the shareholders vote and detect fit. White would... If you want to get a full essay, come out it on our website: Orderessay

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