The Pros And Cons Of Finance

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Hunt Williams & Donaldson has described the finance as a task of providing funds required by a firm on the terms most favorable to it in the light of the objective of the business. MNC are the firms where the finance follows an internal transfer mechanisms. These mechanisms include transfer prices on goods and services traded internally, intracorporate loans, dividend payments, leading (speeding up) and lagging (slowing down) intracorporate payments, and fee and royalty charges. From a financial management standpoint, one of the distinguishing characteristics of the multinational corporation (MNC), in contrast with a collection of independent national firms dealing at arm's length with one another. Financial transactions within the MNC result…show more content…
Multinational financing means business financing. The global market & the changing trend of the contemporary intervention, finance largely effect the multinational finance. The business finance is one of the most necessary tools for the MNC to obtain capital for further expansion of the business. A business firm generally can accumulate its capital from 2 sources one is shareholders fund & other is borrowed funds. The borrowed funds are relatively cheaper but always entail a risk depending upon the performance of the firm & if the firm performs poor they may fail to pay the contractual…show more content…
Sources of financing MNC’s: Basic source of finance are shareholders & borrowed funds. Business finance loans are one of the most feasible sources of finance gathering tool for any company. In order to expand or to start a new business, the business financing plays a vital role in the modern day’s market. The multinational business loans can be generally obtained for the reasons like, any kind of business expenses, buying buildings & offices, purchasing plant & machinery & for the working capital requirements. The repayment flexibility is the major benefit of the business finance loans, taken by the MNC’s, with the submission of business records, profit statements & credit history. The business loans is easily available to any MNC’s. Now with the advent of technologies taking business loans has become even easier. The entrepreneurs can go for the corporate business financing through internet only. To make an elaborate study on MNC financing in India we have referred many publications, journals, magazines, websites etc. The information obtained from these sources was very informative & made the study

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