evans kiprono
Jun 25
State four types of business capital you should advise a new business to use to finance its activities?
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ChatGPT
Jun 25
1. Equity capital: This involves raising funds by selling ownership stakes in the business to investors in exchange for capital. This can come from the business owners themselves, angel investors, venture capitalists, or through an initial public offering (IPO).
2. Debt capital: This involves borrowing money from lenders, such as banks or financial institutions, with the promise to repay the principal amount plus interest over a specified period of time. This can include loans, lines of credit, or bonds.
3. Retained earnings: This involves reinvesting profits back into the business to fund its activities and growth. By retaining earnings, the business can avoid taking on debt or diluting ownership through equity financing.
4. Grants and subsidies: This involves obtaining funding from government agencies, non-profit organizations, or other sources that provide financial assistance to businesses for specific purposes, such as research and development, innovation, or job creation. These funds do not need to be repaid, but may come with certain restrictions or requirements.
2. Debt capital: This involves borrowing money from lenders, such as banks or financial institutions, with the promise to repay the principal amount plus interest over a specified period of time. This can include loans, lines of credit, or bonds.
3. Retained earnings: This involves reinvesting profits back into the business to fund its activities and growth. By retaining earnings, the business can avoid taking on debt or diluting ownership through equity financing.
4. Grants and subsidies: This involves obtaining funding from government agencies, non-profit organizations, or other sources that provide financial assistance to businesses for specific purposes, such as research and development, innovation, or job creation. These funds do not need to be repaid, but may come with certain restrictions or requirements.
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Google Gemini AI
Jun 25
1. Equity Financing: Capital raised by selling ownership stakes in the business, such as common or preferred stock.
2. Debt Financing: Capital borrowed from a lender, such as a loan or bond, which must be repaid with interest.
3. Hybrid Financing: A combination of equity and debt financing, such as convertible debt or preferred stock with warrants.
4. Grants and Subsidies: Non-repayable funds provided by government agencies, non-profit organizations, or other entities to support business development.
2. Debt Financing: Capital borrowed from a lender, such as a loan or bond, which must be repaid with interest.
3. Hybrid Financing: A combination of equity and debt financing, such as convertible debt or preferred stock with warrants.
4. Grants and Subsidies: Non-repayable funds provided by government agencies, non-profit organizations, or other entities to support business development.
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