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Commercial Law

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Question:

How are corporate assets a source of finance?

Author: Kuba Pastula



Answer:

A key effect of a company’s separate legal personality is that the company owns its business and is also able to own property. The availability of such property – both tangible and intangible – could affect a company’s desire and ability to utilise debt financing. a contractual appendage of the giving of debt finance by a creditor could be the demand for security over corporate property. While this is typically the case for smaller enterprises, it nevertheless remains true for larger companies


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