The directors of a company have decided to expand their business activities by increasing the stock of raw materials and finished goods at an estimated cost of Rs. 50 lakhs, Describe the various ways open up the company to raise necessary finance for the purpose.

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Solution

The company can raise necessary finance for the purpose of expansion through the following ways:

(a) Issue of shares

(b) Issue of debentures

(c) Loans from banks and financial institutions

(d) Retained earnings

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The directors of a company have decided to expand their business activities by increasing the stock of raw materials and finished goods at an estimated cost of Rs. 50 lakhs, Describe the various ways open up the company to raise necessary finance for the purpose.

The company can raise necessary finance for the purpose of expansion through the following ways: (a) Issue of shares (b) Issue of debentures (c) Loans from banks and financial institutions (d) Retained earnings

The company can raise necessary finance for the purpose of expansion through the following ways:

(a) Issue of shares

(b) Issue of debentures

(c) Loans from banks and financial institutions

(d) Retained earnings