Question

Finance received on the issue of shares is :
(a) Short-term
(b) Long-term
(c) Medium-term
(d) Short and Medium term ​

Answer 1

Answer:

option. (d). Short and medium term answer this question

Answer 2

Answer:

Finance received on the issue of shares is (b) Long-term source  of finance.

Explanation:

• Long term Finance sources refer to agencies from, or through which finance for a long period can be procured. Some such sources are Capital Market, Special financial institutions, Mutual Funds, Retained Earnings, Foreign Sources, etc.

• Companies can issue shares to raise capital.
• These are long term capital because the funds are paid back only when the company goes for liquidation.

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