Which business organization has the greatest ability to attract new capital?

Finc 331 – finance for nonfinancial manager _ final exam

The business organization with the greatest ability to attract new capital depends on a number of factors, including its size and industry. Generally speaking, larger organizations tend to have more access to capital as they can borrow from banks or issue shares publicly; whereas smaller businesses will often rely upon private investors or venture capitalists for their funding.

Moreover, certain industries are also more likely to receive large amounts of capital due to having greater potential for growth and profitability. For instance, technology companies such as Google and Apple have been able to raise significant sums in venture capital investments because they offered investors promising returns due to their innovative products. Similarly, businesses operating in medical research, healthcare services or renewable energy typically receive a lot of interest from both public and private sectors.

Furthermore, businesses with a proven track record of success – ones that have been around long enough and generated consistent profits year after year – are usually better positioned when it comes down to raising new capital than fledglings trying their luck in the market place. Established firms not only offer lenders security but also provide back up plans in case plan A doesn’t go according to expectation which gradually increase their trustworthiness within financial circles.

In conclusion, organizations with higher assets base, superior platforms for growth coupled with good performance history can command greater degree of investor attention than others; consequently generating substantial influxes of cash into their operations thus helping them stay ahead of competition.