How to raise funds for my business?

How the legal structure of a business affects his liability to raise funds (using examples of a partnership and a public limited company)

  • Answer:

    The major difference between these two is the word limited, which limits the owner's liability. Banks are reluctant to give partnership businesses loans because they might have unlimited liability, but the value of what can be attached to pay the loan is relatively low. For a company, it is much easier to get a loan because banks have access to more resources they can attach to pay the loan, even though the owners have limited liability.

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