BUSF_A01.qxd

Chapter 1 • Introduction

Private equity funds

lFunds pooled privately by large investors.

lFunds often used to buy listed businesses and delist them.

lReplace senior management and typically increase levels of borrowing.

lResell the businesses, sometimes through relisting them.

The role of business finance is discussed by Brealey, Myers and Allen (2007) and by Atrill (2009).

Numerous books deal with the provisions of UK company law. Keenan and Riches (2007) out-

line the more important aspects.

Further

reading

The Financial Times website gives access to current financial information and articles on vari-

ous aspects of business and finance.

http://news.ft.com/home/uk

The Economist website gives access to current financial information and articles on various

aspects of business and finance.

http://www.economist.com

Relevant

websites

1.1 What factors seem likely to explain the popularity of the limited liability company as the

legal form of so many UK businesses?

1.2 How does the position of a limited company compare with that of a human person

regarding liability for commercial debts?

1.3 How does the position of a shareholder in a limited company differ from that of a sole

trader?

1.4 ‘Preference shares and loan notes are much the same.’ Is this statement correct?

1.5 Why are many investment and financing decisions of particular importance to the

business?

1.6 How are risk and return related, both in theory and in practice?

REVIEW QUESTIONS

Suggested answers to

review questions appear

in Appendix 3.

There are sets of both multiple-choice questionsand missing-word questions

available on the website. These specifically cover the material contained in this

chapter. They can be attempted and graded (with feedback) online.

Go to http://www.pearsoned.co.uk/atrillmclaneyand follow the links.

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