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Hemant’s grandfather owned a huge agricultural firm in the name of ‘Organica’. The company had huge acres of land in Kerala where it grew spices. The company planned to expand and was planning to buy land in Coorg, Karnataka where it will grow coffee. While visiting the place, Hemant saw that the villagers had to walk more than 10 kms of hilly terrain to reach the hospital and he also felt that the villagers did not have any work in the evening apart from doing agricultural work in the morning. 

For expansion purposes he required money and the chief financial officer of his company suggested that they raise the required funds directly from the public. Hemant also decided to open a hospital and a skill development centre for the villagers in the evening wherein they can learn a lot of new skills. 

Explain the method of raising funds directly from the public and the primary advantage that Hemant stands to gain from it. 

Also state any two values that he wants to spread.

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Public issue- it is the most popular method of raising capital. It can be raised directly from the public through issue of prospectus. The entrepreneur is required to comply with all the restrictions and formalities pertaining to the initial issues. The primary advantage that an entrepreneur stands to gain is – access to capital.

Values: Teaching the villagers new skills which can lead to more means of earning money.

Opening a hospital – giving accessible medical facilities

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