question_answer 12)

List sources of raising long term and short term finance.

Answer:

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