1.
Which of the following is a long-term source of finance?
A
Commercial paper
B
Trade credit
C
Debentures
D
Cash credit
View Answer
Correct Answer: C — Debentures
Explanation:
The correct answer is C: Debentures.
Debentures are long-term debt instruments issued by companies to raise capital, typically with a fixed interest rate and a maturity period exceeding one year. Commercial paper and cash credit are short-term sources of finance. Trade credit is also a short-term source extended by suppliers.