Explanation:
Sources of finance that are available to a public limited company are:
(i)Loan and overdrafts from Banks: Loans can be obtained from commercial or development banks.
(ii) Sales of shares: It can obtain funds from the public by issuing shares.
(iii) Sales of debentures: These are long term loans obtained from the general public at a fixed interest.
(iv) Bill of exchange: This is a document duly signed by the debtor's bank to the creditor and the creditor cashes the money with some discounts.
(v) Equipment leasing: Equipment can be leased out by companies for money.
(vi) Retained (ploughed back) profits: The profits made by the company can be set aside for re-investment
(vii) Trade credit: Raw materials can be purchased by the company on credit.
(viii) Hire purchase: Facilities can be granted to company to buy and pay on installment.