Question

5.5 This source of finance can help the owner to stay in contr

of the business, but may be limited in terms of the amount
available what source of finance isn’t this ?

Answer 1

The source of finance that is described in the given statement, which can help the owner to stay in control of the business but may be limited in terms of the amount available, is known as "Equity Finance."

Equity finance refers to raising funds by selling ownership shares or equity in the business. This can be in the form of issuing shares to investors or bringing in partners who invest capital in exchange for a share of ownership.

However, the statement suggests that this source of finance may have limitations in terms of the amount available. This is because the owner's control over the business is maintained, and they may be hesitant to dilute their ownership by issuing too many shares or bringing in too many partners.

Therefore, the source of finance that isn't described in the given statement is "Debt Finance." Debt finance involves borrowing funds from external sources, such as banks or financial institutions, and repaying the borrowed amount with interest over a specified period. Unlike equity finance, debt finance does not involve selling ownership shares and does not impact the owner's control over the business.

Answer 2

The source of finance that isn't limited in terms of the amount available is selling stock.

Step-by-step explanation:

The source of finance described in the question that isn't limited in terms of the amount available is selling stock.

The owner can raise funds by selling shares of the company's stock, which allows them to stay in control of the business. The amount of money raised through selling stock can be significant, depending on the demand for the company's shares. It is a common source of finance for larger companies that have established a market value for their shares.