Question

List sources of raising long term and short term finance.

Answer 1

Sources of Long Term Finance

(i) Equity Shares

(ii) Retained earnings

(iii) Preference shares

(iv) Debentures

(v) Loans from banks and other financial institutions

Sources of Medium Term Finance

(i) Lease financing

(ii) Public deposits

(iii) Loans from banks and other financial institutions

Sources of Short Term Finance

(i) Trade credit

(ii) Factoring

(iii) Commercial papers

(iv) Short term loans from banks