What are types of business finance?

Solution

Types of Business Finance :

1. Long-Term Finance : Finance required for permanent fixed investment in revenue generating fixed capital is known as long-term finance. Long period consists of more than 5 or 10 years. Long-term finance cannot be withdrawn.

2. Medium-Term Finance : Medium term consists of the period between 2 to 5 years (depending upon nature and size of enterprise).

3. Short-Term Finance: Short-term consists of the period not exceeding one year. It is also known as circulating or working capital. It meets the short-term day to day operating needs of the business. Trading firms require more working capital than manufacturing concerns.

Some More Questions From Sources of Business Finance Chapter

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Sources Of Business Finance

What are types of business finance?

Some More Questions From Sources of Business Finance Chapter

Give types of working capital.

Give meaning of owner’s capital.

Give meaning of borrowed capital.

Give meaning of long-term finance.

Give meaning of medium-term finance.

Give meaning of short-term finance.

Define shares.

Give the types of shares.

Define preference shares.

Give meaning of equity share.

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