Question

Mention any four sources of finance for proprietary form of business organisation.

Answer 1

1. Owner’s Capital: The proprietor’s own savings and personal funds invested in the business.
2. Loans from Friends and Relatives: Borrowing money from close contacts without formalities.
3. Bank Loans: Short-term or long-term loans from banks to meet business needs.
4. Trade Credit: Purchasing goods or services from suppliers on credit (without immediate payment).