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3.5 finance
sources of finance
share capital
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Created by
Myka Diaz
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Cards (2)
Share capital
- capital raised by selling shares to shareholders
pros and cons - share capital
p - no
repayments
needed
p - access to
large
capital
p -no
interest
paid
c -
dilution
of control
c -
profit
sharing
c - if too many shares are issued to
external
investors the company could become
vulnerable
to hostile
takeovers
or
changes
in control