What are the different ways a business can raise capitalv

Bank Loans (long or short term) - however they can incurs high interest rates. Overdraft -(short term solution) but again includes paying interest. Business angles - people that invest in your business with the sole purpose of making a return, they do not make any other contributions bar financial and are paid in equity. Selling shares on the stock exchange - this method is on available to PLC's as LTD's can only sell to friends/family - quick way of generating capital but owners decrease the amount of business they own.

EY
Answered by Emma Y. Business Studies tutor

1728 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

Explain how a business can use outsourcing. (2 marks)


Explain how a company selling a new brand of milk chocolate bar may benefit from using a penetration pricing strategy. (4 marks)


What is the difference between a public limited company and a private limited company?


What are the advantages of doing business as a sole trader?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning