Business (Y12) - Sources of finance - Share Capital

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5 Terms

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What is share capital?

Raised by selling shares

2
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Is share capital a short-term or long-term source of finance?

Long-term

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Is share capital an external or internal source of fincance?

External source

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What are the benefits of share capital?

No cost to raise, no interest charged, owners have full control of who invests and how much

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What are the drawbacks of share capital?

Future profits shared between shareholders, owners share reduces with every new investment received