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Question -

The directors of a company have decided to expand their business activities by increasing the stock of raw materials and finished goods at an estimated cost of Rs. 50 lakhs, Describe the various ways open to the company to raise necessary finance for the purpose.



Answer -

The company can raise necessary finance for the purpose of expansion
through the following function.
(a) Issue of shares
(b) Issue of debentures
(c) Loans from banks and financial institutions.
(d) Retained earnings.

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