Question

Ranby Ltd. wants to raise long term capital for their business. Name any two sources that are

suitable to them.​

Answer 1

The two sources for raising the long term capital are :-

1. External sources:

• Issuing shares (both equity shares and preference shares)

• Issuing debentures

• Long term loans from banks and financial institutions

• Accepting deposits from public

2. Internal sources:

• Re-investment of earnings

• Re-investment of profits

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