Saudi Electronic University Companies Law Discussion

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1- Case Study Question:
Party A graduated from business school and has learned the details about running a
successful business. He is ready to utilize his education and does not want to work
for anyone. Party A had decided to sell the fifty thousand rulers that his Uncle gave
him. He knows that he will have to purchase additional supplies.
You are his business advisor, and he wants to know how he can raise the money to
finance his business and if he should take out a loan.
Discuss the two main ways that corporations are financed?
The two ways are:
1. Borrowing: which incurs debt
2. Investment of funds by owners: which creates equity
Capital: Equity & Debt
2- Discussion Question:
What kind of relationships are fiduciary trust relationships? Please answer in
2-3 sentences.

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