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Unit `

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Submitted By nats1997
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Sources of finance | Definition | Advantage and disadvantage | Profit | You can get customers to buy the product your selling or to be using your company and the more you do this your business is successful the more money you will get. This is an internal source | The good thing about profits is that if you have been selling a lot of things if you are part of the marketing industry and you have noticed that you are getting a lot of money because more people are buying your product this will mean more money to the company. The bad thing is that if you are not as successful as you are meant to be then you will be putting yourself in debt to make sure that the ratings for your company arte up. | Family and friends | You can ask your family members and yours friends to help you out if you need money and you don’t want to take out a loan. | Sometimes your family may want to have their money back as soon as and this may cause problems in the family. The good thing about this is that you will be able to approach them and ask for money when you need it and they would agree to it and you can give them the money back whenever you feel like you are ready to. | Shares holders | Any person, company or other institution that owns at least one share of a company’s stock. Shareholders are a company's owners. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly. | The good thing Having a shareholders agreement is a cheap way to minimise any potential for business disputes between owners by making it clear how certain decisions are made and also by providing a framework and procedures for dispute resolution. The bad thing about this is that A bankruptcy situation is regretful for equity and debt investors alike, but the fallout can be especially punishing for common stock shareholders. |

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