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The principal sources of venture capital funds for a business firm are equity capital, preference capital, debenture capital and term loans. Equity capital represents ownership capital because equity shareholders collectively very own the business. They enjoy the particular returns, along with carry the hazards regarding ownership. Nonetheless, their particular responsibility, as opposed to the particular responsibility with the operator in the private firm as well as the lovers in the collaboration issue, is fixed with their capital benefits. Since equity capital funds symbolize long lasting capital, there's no responsibility regarding settlement. That raises the creditworthiness with the business. Generally speaking, the larger the equity bottom, the larger the capacity with the business to receive credit ratings. [http://michaelzimmermanprentice6lng.com prentice capital michael zimmerman]