Assume that you have started a date fruit processing business in Ibri. Your business will reach to peak stage from the month of June to October (because of season) and again it will become normal from November to May. Therefore you need some extra capital for the period of 5 months. There are some options to mobilize the capital from the local financial market like equity shares, preference shares, term bonds and serial bonds. Which of the given source is suitable for your business? Explain your answer with suitable reason.

Assume that you have started a date fruit processing business in Ibri. Your business will reach to peak stage from the month of June to October (because of season) and again it will become normal from November to May. Therefore you need some extra capital for the period of 5 months. There are some options to mobilize the capital from the local financial market like equity shares, preference shares, term bonds and serial bonds. Which of the given source is suitable for your business? Explain your answer with suitable reason.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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