Business law
Q.1 What are the different sources of raising capital? Ans.1 Raising capital is the most essential part of any business, this is because a huge amount of capital is required to run any business. The different ways by which a company can raise capital under the companies act, of 2013 are as follows: 1.) Sources of long term capital of a company are: a) Share capital : Shares are the minimum denomination of share capital. Raising capital through share capital. Investment in shares of the company gives ownership rights to the shareholders. A company can raise its capital by issuing shares to the public which is subscribed by the public. A shareholder gets a dividend for an investment done in the company’s stock. This is a part of the earned profit by the company from its business operations. b) Debentures : Debentures are a form of debt capital. It includes the stock, bonds bond and other instruments. Debentures are unsecured investments. Debentures do not offer any voting rights. D...