The directors of a famous I.T company have decided to set up a new firm in Pune, with an estimated cost of rupees of eight crores. Which of the following sources of finance would be most suitable?

Public deposits, Short-term loans from commercial banks, Trade credit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Equity shares, Preference shares, Debentures

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Trade credit, Factoring, Banks

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Commercial papers, Debentures, Equity shares

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
Equity shares, Preference shares, Debentures

Setting up of a plant means funds are required for investment in long-term assets. There are various sources of long-term finance, such as equity shares, preference shares, and debentures.

Suggest Corrections

Similar questions

The directors of a company have decided to modernise the plant and machinery at an estimated cost of rupee one crore. State the merits and demerits of issuing equity shares for the purpose.

The directors of a company have decided to expand their business activities by increasing the stock of raw materials and finished goods at an estimated cost of Rs. 50 lakhs, Describe the various ways open up the company to raise necessary finance for the purpose.

Q. You are the finance manager of a company. The board of directors have asked you to decide the dividend policy. What factors would you keep in mind to perform this function?

As a finance manager, advise the directors about various sources of finance for financing the expansion of your company.

Q. Chandra Ltd, is a manufacturer of Laptops. It made a profit of 1000 crores. The director have proposed a dividend of 38%. As a finance manager of the company, what factors would you consider while formulating a dividend policy of the company?

Join BYJU'S Learning Program

The directors of a famous I.T company have decided to set up a new firm in Pune, with an estimated cost of rupees of eight crores. Which of the following sources of finance would be most suitable?

The correct option is B Equity shares, Preference shares, Debentures Setting up of a plant means funds are required for investment in long-term assets. There are various sources of long-term finance, such as equity shares, preference shares, and debentures.

The correct option is B
Equity shares, Preference shares, Debentures

Setting up of a plant means funds are required for investment in long-term assets. There are various sources of long-term finance, such as equity shares, preference shares, and debentures.