Day: March 6, 2022

The few promoters of venture capital are risk averse and therefore are discouraged by the level of risk, the length of investment and the liquidity of investment. The nature of firms in Kenya is such that they are privately owned Read More …

Venture capital is a form of investment in new and risky small enterprises which is required to get them started. Venture capitalists are therefore investment specialist who raises pools of capital to fund new ventures which are likely to become Read More …

Lease charges are usually prohibitive i.e. the cost of finance is excessive. It may not be known to businessmen. Uncertainty as to returns from such assets i.e. the returns from such assets leased may not encourage the growth of lease Read More …

Leasing is a contract between one party called lessor (owner of asset) and another called lessee where the lessee is given the right to use the asset (without legal ownership) and undertakes to pay the lessor periodic lease rental charges Read More …

1. The floatation costs are higher than those of debt 2. It is only accessible to companies that have fulfilled the capital markets authority requirements 3. It can lead to dilution of ownership of control of the firm by the Read More …

1. They facilitate projects especially long-term projects because they are permanent.. 2. Its cost is not a legal obligation. 3. It lowers gearing level – reduces chances of receivership/liquidation. 4. Used with flexibility – without preconditions. 5. Such finances boost Read More …