Question

List sources of raising long-term and short-term finance.

Answer 1

Sources of raising long and short term finance are shown in the chart given below:

Long term Finance sources:

1. Equity shares,
2. Retained shares,
3. Preference shares,
4. Debentures,
5. Long from financial institutions,
6. Long from a bank.

Short term Finance sources:

1. Trade credit,
2. Factoring,
3. Banks,
4. Commercial papers.