Question

Find the odd one out from the sources of long-term funds.

• A. Shares
• B. Commercial Paper
• C. Debentures
• D. Loans from banks

Answer 1

The correct option is B

Commercial Paper

Shares, Retained Earnings, Debentures, Loans from financial institutions and loans from banks are different sources of long-term funds. The long-term sources fulfil the financial requirements of an enterprise for a period exceeding five years. Such financing is generally required for the acquisition of fixed assets such as equipment, plant and so on.