Q2 of 22 Page 210

List sources of raising long-term and short-term finance.

Long-term source of raising finance are- Equity shares, Retained earnings, Preference shares, Debentures, Loans from financial institutions, Loans from Banks.

Short-term finances are- Trade credits, Factoring, Banks, Commercial paper.


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10

Internal sources of capital are those that are

 1

What is business finance? Why do businesses need funds? Explain.

 3

What is the difference between internal and external sources of raising funds? Explain.

 4

What preferential rights are enjoyed by preference shareholders? Explain.