Question

Elaborate the different finance functions in corporates

Answer 1

1. long-term finance
2. medium term finance
3. short term finance

Explantation:

• long-term finance: this includes finance of investment three years or more sources of long term finance include owner capital , share capital , long term loans , debentures , internal funds and so on
• medium term finance: this is financial done between 1 to 3 years this can be sourced from bank loans and financial institutions.
• Short term finance: this is finance needed below one year. funds may be acquired from Bank overdrafts, commercial paper, advance from customers, trade credit etc.