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Sources and methods of finance
Long term
Share capital
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Cards (4)
PLC
and
LTD
can be financed by share capital Which is money raised by selling shares
Pro- money doesnt need to be paid
back
and new shareholders can bring in expertise
Con- original owners don’t
own
the shares which were sold and shareholders expect
dividends
and may want a say in how the business is run
Selling shares is
time
consuming and costky