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Finance (source of finance (Internal source (Retained profits (adv:…

- - - - main source of finance for sole traders & partnership
    - - adv: doesn't incur interest charge
      - disadv: retained profits are limited
      - profit after tax & paying dividends to shareholders
    - - selling dormant asset (asset not in use)
        
        can solve liquidity problem
        
        incase of Relocation: selling land, building, old machinery
  - - - main source of finance for Limited Liability Companies
      - adv: can provide huge amount of finance
      - Money raised from selling shares
    - - medium-long term source of finance obtained from commercial lenders such as bank
      - Examples
        
        Mortgage
        
        Business development loan
        
        Debentures