Question on: JAMB Economics - 2002

The most common sources of external finance for a limited liability company (a type of business that is separate from its owners) include: * **Issuing of shares:** This allows the company to raise capital by selling ownership stakes to investors. * **Bank loans:** These are debt financing, where the company borrows money from a bank and agrees to repay it with interest. Here's why the other options are less suitable: * **A. the leasing equipment:** Leasing equipment is a way to obtain assets without purchasing them. It's a form of financing but is not the primary way a company obtains external finance. * **C. trade credits:** Trade credits are short-term financing from suppliers, not the primary source of external finance. * **D. banks loans:** Bank loans