Business Studies Collins Revision Guide. - StudyGuide.PK

●●●SOURCES OF FINANCE (2)A sole trader can increase his capital by putting in more of his ownmoney or looking for a partner to join the business. However, thismeans he will then have to share decisions and profits.A partnership can add additional partners to the business toobtain more funds.A private or public limited company can sell additional shares. Ifthis is to new shareholders it will mean sharing the profit betweenmore people.Grants●●Grants can be obtained from a wide range of sources. However,only some geographical areas and types of business qualify forparticular grants. The grants also vary greatly in value. Some arelinked directly to an aspect of business, for example, for marketingor for diversification.Providers of grants include charities like the Prince’s Trust, the localcouncil, the government and the EC.Borrowed funds●Money can be borrowed for a variety of lengths of time. These arerelated to the purpose the money is needed for. These lengths oftime are a guide as some lenders use slightly different times:Short termMedium term1 day to 3 years3–10 yearsLong term 10 years +29