Raising finance is the process of gathering the funds necessary to support business activities or projects. InGCSE Business students, it's important to understand that businesses can obtain finance through various sources. This includes borrowing from banks, issuing shares, or using retained profits.
Each method of raising finance has its advantages and disadvantages. Choosing the right one depends on the size of the business, its financial health, and the intended use of the funds. Effective fundraising ensures that a business can invest in growth opportunities, manage cash flow, and achieve its objectives.
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