Topic > How companies sustain themselves

IndexStakeholders and shareholdersThe role of debt in financing companiesConclusionReferences:Every company or business needs revenue to sustain itself. In company portfolios, readers typically see that there are two ways the company makes money. One of the main goals of entrepreneurs is to find ways to support finance in a time of financial danger. One way is to find more stakeholders for future investments. The other way is to provide debt to consumers and earn interest-based income. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The portfolio serves as an important figure in a company's ongoing history and infrastructure maintenance. Business portfolios contain all the necessary information about a company. (Schmitz) Revenue, losses, gross profits, and expected revenue and losses. This proves that many companies have no secrets. Therefore, many companies urge consumers to view their information before investing in their product or company. All business activity is public in a legal entity. Which raises the topic of the role of a shareholder in a large organization. Stakeholders and shareholders The main thing in joint stock organizations are the stakeholders. Most large companies have shareholders. They possess a high amount of income every year. These shareholders purchase a small stake in the company, which is usually around 0.5%. (Schmitz) This percentage is normally worth millions of dollars. This is the number of companies that maintain their annual income. Typically, the shareholder board consists of hundreds of people. This is almost a bit like a bank loan, except the shareholder is the “loan shark”. The Role of Debt in Corporate Financing A major source of income for many organizations is debt. They offer their money to banks, to which the money is given in the form of loans. Then, the customer pays interest to the bank, providing extra capital to the company. (Smith) In other words, they become providers of legal, indirect loans. This is one of the main ways that some businesses, in fact, earn their revenue. This brings up the part of the thesis that illustrates one of the ways organizations maintain funding, even during difficult times or phases. Therefore, these measures are necessary for the financial growth of an organization during a small internal recession. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Conclusion In conclusion, all businesses look for a permanent relationship strategies to finance themselves. Many companies release their data to the public, making them a public company. Stakeholders are the main purpose of this objective. On top of this, many large companies indirectly become “loan sharks” through banks and building societies. Even when a business is in financial trouble, it will still earn income. However, these entities are still required to conduct business during this period. This means that not all companies can pull it off so easily. References: Schmitz, JoAnne, “Business Maintenance.” University of Warsaw, 2 January 2018.Smith, Duncan, “Maintain an Organization”, University of Oxford, 5 May, 2019.