Types Of Business Finance

Define Finance: L.J. Gitman says, Finance is concerned with the process, institutions, markets and instruments involved in the transfer of money among individuals, business and governments”.// So we can say that, Finance is the combination of different activities like raising of funds, investments of funds and management of funds to accomplish the objectives of an individuals or of a firm. You can often act first and think later, being impulsive and lacking discipline and order, which means you can end up regretting things. Drug or alcohol abuse, or an overindulgence in food or sex can sometimes happen to those with 5 Life Path if your need for adventure and freedom isn’t properly controlled.

Equity finance is the perfect example of true risk capital. This is because there is no guarantee that your investor will ever get there money back. Unlike lenders equity finance investors don’t normally have the rights to interest or to be repaid at a particular date. The way in which equity investors regain the money that they have invested into a company is through taking a share of the business and a percentage of the profit. It is because of this high risk involved in equity finance that if your business can not support growth rates of at least 20% you may not be able to attract equity funding. Equity investors are more likely to invest in someone they feel they can trust with a clear business plan and strategy.

This module aims to provide students with the opportunity for independent learning through the completion of an individual, extended research project. The project requires a high level of individual application and commitment to research and enquiry. It provides students with the opportunity to identify, reflect upon and explore a topic that has implications for their own professional development.