Question

Classify the sources of funds on the basis of funds generated ? ​

Answer 1

On the basis of ownership, the sources can be classified into 'owner's funds' and 'borrowed funds'. The sources for raising borrowed funds include loans from commercial banks, loans from financial institutions, issue of debentures, public deposits and trade credit.

Answer 2

Answer:

Sources of finance for business are equity, debt, debentures, retained earnings, term loans, working capital loans, letter of credit, euro issue, venture funding etc. These sources of funds are used in different situations. They are classified based on time period, ownership and control, and their source of generation.

Explanation: