1.Find out the various sources of finance used by the company. 2.

Write a summery on the operation of the company 1-raising the finance was not too difficult because his engineering contacts enabled him to identify suppliers of every single component. He invested 30,000 pounds from his own money and He also took a bank loan of 15,000 pounds because he needed a small assembly plant which could easily be rented. Business gave him a profit of 60,000 since the start when he needed 100,000 to increase the production capacity to the level of demand so he negotiated a package of 55,000 of loan capital and 15,000 of share capital . *Ventures capitalist angel investors *internal source of finance and external source of finance long term-shares, mortgage, debentures medium term financeLet's assume you are asking about mortgage financing; Long term financing guarantees your interest rate, and your payment, will remain at the same level as when you started for the term of the loan, usually 30 years.Short term financing, usually at a slightly lower rate, guarantees your interest rate only for the "short term" 1 year, 5 years or whatever you negotiate. At the end of the term your interest rate will adjust to the then curent rate. That could be a lower rate but historically it will be a higher rate. Other circumstances may impact your ability to extend that mortgage unless you have a guarantee for refinancing at the then current rate. You should discuss your options with a qualified mortgage lender or attorney.

Vendol lanka is a soap and detergents manufacturing company a record of success in manufacturing soaps with indigenous raw materials capturing a substantial in sri lanka. Riding on its success, vendol lanka intends to establish a venture in Nepal, under the name vendol Nepal ltd. Vendol management has decided that total investment required for the total project of land, building, machines, and working capital for the first 3 months of operation wiil be capped at us$200,000. Of this amount, vendol will only provide us$40,000 by way of equity. You have been asked to develop a project document which will consist of the following elements:

1.structure an investment strategy specific funds allocations for land, building, machinery, intial inventory of raw materials, direct labour and other operating costs which will not exceed us$200,000 2.develop a strategy of providing the total finance requirements by way of equity and debt and other instruments which will help reach TFR find out the dis and adv of various sources of finance with debentures and ordinanry shares