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BASIC INSTRUMENTS FOR BUSINESS FINANCE

CONTENT

  1. Definition of Business Finance
  2. Shares
  3. Debenture
  4. Bonds
  5. Sources of Fund for Business
  6. Problems of Business Finance In Nigeria
  7. Definition of Business Finance
  8. Suggested Solutions to Problems of Business Finance In Nigeria
  9. Summary

 

Definition of Business Finance

Business financing involves the sourcing and management of fund by enterprise.

The basic instruments of financing business includes:

  • Shares
  • Debentures
  • Bonds

Shares

A Share is the individual portion of a public limited company’s capital owned by a shareholder. Shares are divided majorly into two. These are:

  • Ordinary Shares
  • Preference Shares

A. Ordinary Shares

Ordinary shareowners are normally owners of the business who hold the voting control of the company and the right to participate in the profit. They are considered last. They do not have fixed dividend. Their dividends are flexible depending on the performance of the company.

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