For what long term finance is required?
Long-term finance is that which is required for a long period of time, i.e. no less than 5 years . These long-term sources are generally required for the acquisition of fixed assets as these fixed assets are purchased for a long period and are also very expensive than current assets. Was this answer helpful?
What is a long term finance in business?
Definition. Long-term finance can be defined as any financial instrument with maturity exceeding one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.
Why would a business use long term finance?
Diversifies Capital Portfolio – Long-term financing provides greater flexibility and resources to fund various capital needs, and reduces dependence on any one capital source. It also enables companies to spread out their debt maturities.
Which is the long term sources of finance?
Capital market, special financial institution, banks, non-banking financial companies, retained earnings and foreign investment and external borrowings are the main sources of long- term finances for companies. securities market.
Which is the long term sources of finance Mcq?
External Commercial Borrowings is a long term source of finance.
Which of the following is not a source of long term finance Mcq?
Solution(By Examveda Team)
Commercial papers is not a source of long-term finance. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.
Which of the following is not a source of long-term finance Mcq?
Which of the following is a long-term source of working capital Mcq?
Long-term working capital sources include long-term loans, provision for depreciation, retained profits, debentures and share capital.
Which is the long term sources of working capital Mcq?
Which of the following is a long term source?
Which is not the long-term sources of working capital Mcq?
Solution(By Examveda Team) Commercial papers is not a source of long-term finance. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.
Which of the following is not a function of finance manager Mcq?
The correct answer is (c) because internal control is a function of the controller s office. Answers (a), (b), and (d) are incorrect because the functions of financial management include: financing, capital, budgeting, financial management, corporate governance, and risk management.
What are the sources of short term working capital Mcq?
Working Capital MCQ Question 2
The correct answer is: Raw Material. Raw materials and available money are called working capital.
Is a long term planning for financial proposed capital outlay Mcq?
“Capital budgeting is long term planning for making and financing proposed capital outlays”.
Which is not a long term sources of finance Mcq?
Which one of the following is not a long term financial institution?
Which of the following is a long term sources of working capital Mcq?
Which of the following is goal of financial management Mcq?
Which of the following is the goal of financial management? the goal of financial management is maximise the wealth of Equity shareholders.
Which of the following is function of financial management Mcq?
Solution(By Examveda Team) Mobilizing funds, Risk returns trade off, Deployment of funds and Control over the uses of funds are the function of the finance manager.
Which of the following sources of funds has an implicit cost of capital Mcq?
Retained Earning are the source of fund that has an implicit cost of capital.
Which is not the long term sources of working capital Mcq?
Which of the following is not a financial investment Mcq?
Explanation: purchase of bond is the right answer.
Which of the following is a long term source of finance Mcq?
What are sources of finance?
External sources of finance refer to money that comes from outside a business. There are several external methods a business can use, including family and friends, bank loans and overdrafts, venture capitalists and business angels, new partners, share issue, trade credit, leasing, hire purchase, and government grants.
What is long-term financial planning?
Long-term financial planning involves projecting revenues, expenses, and key factors that have a financial impact on the organization. Understanding long-term trends and potential risk factors that may impact overall financial sustainability allows the finance officer to proactively address these issues.