Sources of Financing for Different Types of Businesses

Accounting for Business

Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Task..................................................................................................................................................3
Conclusion.......................................................................................................................................5

Introduction
Accounting is means by which a company keeps records of its activities. Accountants
examine the financial statements of a company so that owner can make informed decisions This
data is organized through reports that display a company's financial position. Accounting aids
company owners in meeting their legal responsibilities. This also assists them in making sound
financial decisions (Vinczeova and Kascakova, 2017). Study-report evaluates the sources of
longer-term financing for sole proprietorship business, partnerships, private ltd companies as
well as public limited corporations (including listed) in respect of external longer-term sources of
financing, comparing and contrasting them.
Main Body
Task
Partnership: Obtaining funds for start-up or to extend existing operation is difficult task for any
organization. The funding options for partnership business are similar to those for other form of
business enterprise, whether its sole proprietorship, partnership, or full-fledged company.
Following are key sources of finance for partnership business, as follows:
Bootstrapping Partnership
A popular means of funding for new or expanding relationship is partners' own pockets,
deeper or other. Take into account how much of business own financial capital one can bring
into partnership, and inquire partners to do same. This is recognized as the self-funding or
the bootstrapping. Savings, securities, and shares or even retirement plan accounts may be used
as sources. Keep in consideration that partner risking their personal finances, so they will need to
figure out what degree of risks tolerance works best for partners (Ekpo, Etukafia and Udofot,
2017).
Explore Venture Capital Funding
Business plan should be presented to the venture capital investors looking for higher-growth
business prospects. Venture capitalists frequently have large pockets which may be sufficient to
completely finance the collaboration. VC funders, at the other hand, usually want to be heavily
interested in business management and decision-making, therefore funding could imply
relinquishing complete control of the partnership.
Crowdfunding
Turning to internet for the crowdfunding opportunities is newer model of financing partnership.
Crowdfunding functions by securing number of small investments instead of either one two big