Business Studies, asked by Akash7766, 10 months ago

What are different sources of finance?

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Answers

Answered by Anonymous
3

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⎇ Owners Fund

⎇ Borrow Fund

Owners fund is also called as Owners Capital or owned capital. It consists of the funds contributed by the owners of business as well as profits reinvested in business. A company cans raise owner’s funds in the following ways:-

→Issue of equity shares

→Ploughed back profits

The second source of funding to a business is the borrowed fund. Borrowed fund consists of the amount raised by way of loans or credit. It is also known as borrowed capital. The borrowed fund is procured from the following sources;-

Debentures

Bank Loans

Loans from specialized financial institutions

Other long term financial institutions

Types of Business Finance:-

→Short Term Finance

→Medium Term Finance

→Long Term Finance

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Answered by prasannrock27
0

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