Question

As a finance manager of the company you have to classify the funds of business on the basis of ownership.
You may classify the sources as:
a. borrowed funds;
b. owned funds;
c. short term funds;
d. both a and b.

Answer 1

c or b is the answer

Answer 2

Money is crucial for the effective functioning of a business. Owners fund and borrowed funds are the two primary categorisations of business capital on the basis of ownership.

Owners fund is the fund the owner of the business provides. On the other hand, borrowed funds are the finances which are raised as loans.

Based on the time period also business funds can be classified as long-term period and short-term period.