Business Studies, asked by stutik191, 9 months ago

the sources of fixed capital is not 1- issue of debenture 2- issue of share 3- creditors 4- loan from industrial finance corporation of India​

Answers

Answered by mohitsoni02000
3

Answer:

it is the answer 3 creditore

Answered by dharanikamadasl
1

Answer:

Option 3 -  Creditors

Explanation:

Issue of debentures: They represent the loan capital of a company and creditors are the holders are the debentures.

  • Debentures are fixed charged funds.
  • They carry a fixed rate of interest.
  • This is suitable if the sales and earnings of the company are relatively stable.  

Issue of share: The shares provide a preferential right to all the shareholders with respect to repayment of the capital and payment of earnings.

  • The people who invest prefer a steady income without any higher risks prefer shares.

Creditors: The holders of debentures are called creditors.

  • Creditors are not the source of fixed capital.

Loans: State and Central governments have set up a number of financial institutions all over the country.

  • They provide industrial finance to companies that are engaged in business.
  • These banks are also called development banks.
  • The source of financing is considered suitable when large funds are required for reorganization, modernisation, and expansion of the enterprise.  

Hence, creditors if not the source of fixed capital.

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