Month: March 2022

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 …

Shares are used as securities for loans (a compromise of the market price of a share). • Its value grows. • They are transferable at capital gain. • They influence the company’s decisions. • Carry variable returns – is good Read More …

This is a common type of debt and is available in different terms usually short term. Medium term loans vary from 2 – 5 years. Long-term loans vary from 6 years and above The terms are relative and depend on Read More …

Sources of finance can be divided into two Short term sources They are refundable after a long period of time i.e. after 3 years They include commercial paper, bank overdraft, loans, promissory notes, treasury bills, bills of exchange letters of Read More …

It is a new discipline of management which evolved in the last quarter of the 20th century. Though relatively new in the management circle, the issue of corporate governance is one of the leading issues in leadership and management. Corporate Read More …

An agency relationship is created when one party (principal) appoints another party (agent) to act on their (principals) behalf. The principal delegates decision making authority to the agent. In a firm agency relationship exists between; 1 Shareholders and management 2 Read More …