5.2.1—Ownership and finance sources

Owners can finance a business through retained profit or additional capital, while legal form affects access to shares, borrowing, liability and control. Finance is linked to governance as well as cash.

Retained profit avoids interest and new owners but may be limited. Share finance can raise substantial funds but dilute control; debt preserves ownership but creates repayment risk.

A private company might reinvest profit for a small expansion, while a public company can issue shares but face disclosure and shareholder expectations.

A source is not “cheap” without considering control, risk, timing and opportunity cost.