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Question 1 Imagine two siblings, Tony and Jack Lee are planning to set up a company in Malaysia. They need to raise RM3 million to
Question 1 Imagine two siblings, Tony and Jack Lee are planning to set up a company in Malaysia. They need to raise RM3 million to get their company off the ground. For many entrepreneurs, especially first time founders, raising capital can be daunting. Tony has proposed to Jack a few methods to raise capital as following:- 1. Preference shares 2. Debentures 3. Ordinary shares 4. Bank borrowing Required: Explain the different methods to raise capital. Your answer should include the advantages and disadvantages of the methods. [8 marks]
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