Question

Which is not the feature of long term Finance?
a)This type of fund is used for acquiring fixed assets such as land, building,
b)This type of Finance is required to make day to day requirements such as holding stock of raw materials
c)This type of Finance is required for expansion projects and adoption of innovative techniques
d)This type of Finance is required comparatively more by the large scale Enterprises as compared to small Enterprises​

Answer 1

Answer:

b) This type of Finance is required to make day to day requirements such as holding stock of raw materials.

Answer 2

Answer:

The answer is b)This type of Finance is required to make day-to-day requirements such as holding stock of raw materials.

Explanation:

Long-term finance can be represented as any monetary instrument with a maturity overreaching one year (such as bank loans, bonds, leasing, and other states of debt finance), and public and private equity instruments.

Special features of long-term finance are:

• Finance needed for more than 5 years exists known as long-term finance. According to specific authorities, finance for a period exceeding ten years is known as long-term finance.
• Long-term finance is utilized for investing in fixed assets, such as land, building, plant, machinery, vehicles equipment, furniture, etc.
• Long-term finance satisfies the long-term financial needs of the business. These necessities are permanent needs of the business.
• Fixed assets purchased out of long-term finance exist revenue-generating.

Hence, b)This type of Finance is required to make day-to-day requirements such as holding stock of raw materials is not the feature of long-term Finance.

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