M.C. Bakali, Department Of Commerce, H G C
Author : cheryl-pisano | Published Date : 2025-05-17
Description: MC Bakali Department Of Commerce H G C FINANCIAL MANAGEMENT TOPIC SOURCES OF FINANCE UNITII SOURCES OF FINANCE Every enterprise whether big medium or small needs finance to carry on its operations and to achieve its targets In
Presentation Embed Code
Download Presentation
Download
Presentation The PPT/PDF document
"M.C. Bakali, Department Of Commerce, H G C" is the property of its rightful owner.
Permission is granted to download and print the materials on this website for personal, non-commercial use only,
and to display it on your personal computer provided you do not modify the materials and that you retain all
copyright notices contained in the materials. By downloading content from our website, you accept the terms of
this agreement.
Transcript:M.C. Bakali, Department Of Commerce, H G C:
M.C. Bakali, Department Of Commerce, H G C FINANCIAL MANAGEMENT TOPIC- SOURCES OF FINANCE UNIT-II SOURCES OF FINANCE: Every enterprise, whether big, medium or small, needs finance to carry on its operations and to achieve its targets. In fact finance is so indispensible today that it is rightly said that finance is the life blood of business enterprise. Capital required for a business can be classified under two main categories. Fixed Capital Working Capital Long-term funds are required to create production facilities through purchase of fixed assets such as plant, Machinery, land, building, furniture etc. Investment in these assets represent that part of firm’s capital which is blocked on a permanent basis and is called fixed capital. Funds are also needed for short –term purposes for the purchase of raw materials, payment of wages and other day-to-day expenses .These funds are known as working capital. The various sources of raising funds have been classified on the basis of period as follows: Long-term funds: Issue of share Issue of Debentures Ploughing back of profit Loans From Specialised Institutions Medium Term funds: Issue of pref. Shares Bank loans Public deposit Short term funds: Bank credit Customers Advances Trade credit Factoring Loans from specialized financial institutions Deferred incomes Commercial papers Accruals Deferred Income Instalment Credit
