Question

Q1) Suggest the economic term for the given statement (Any)

1) Udhav purchased a new Machine for his farm by taking loan.
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Answer 1

Explanation:

I think he had kept hope on agricultural sector and he bought a machine by taking loan and he had to pay interest for that and please Thank me and follow me

Answer 2

In this case,one of the suggestible term for Udhav's action can be "factor or input financing" by taking business loan.

Explanation:

In business,on numerous occasions,the business owners take short term or long term loans to finance various assets which can be used in the production of goods and services.In this instance,a new machine is an asset in business which can be used Udhav for various operational or production purposes and earn future economic or financial benefits.Hence,the machine can be considered as a factor or input of production and purchasing it by taking loan is one kind of financing in financial and economic term.