Shubham Ltd. has decided to expand its production capacity by modernisation its plant and machinery at an estimated cost of Rs 2crore. It does not have adequate reserves to finance the expansion. Suggest any four sources of finance for the company.
Answers
Answered by
7
Answer:
To expand its production capacity by modernising plant and machinery, the company has to depend on long-term sources of financ. If the company does not have adequate reserve (i.e, retained profits ), it may rely on following sources.:
(i) Debentures (ii) Financial institutions
(iii) Equity shares (iv) Preferencek shares. .
Similar questions