Question

briefly explain various sources from which companies May raise long term capital​

Answer 1

Answer:

Explanation:

Capital market, special financial institution, banks, non-banking financial companies, retained earnings and foreign investment and external borrowings are the main sources of long- term finances for companies.

Answer 2

Companies can raise long-term capital from banks, financial institutions, shareholders, etc.

Explanation:

• Long-term capital may be defined as the capital which is invested for a long-term in any business or other economic activity.
• A firm can procure long-term capital from various sources such as banks, financial institutions, shareholders, etc.
• The banks approved by the reserve bank of India are the most reliable source of credit procurement. This is mainly because banks offer loans at a very reasonable rate of interest.
• Financial institutions like NABARD set specifically for industrial activities are also a great alternative for borrowing long-term capital. These institutions also provide additional benefits.
• Shareholders can also provide long-term capital to the companies on payment of dividends and various rights.