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Sources Of Finance : Business Finance MCQ Practice Questions & Answers (Marathi) - ObjectiveMcq

Business Finance Practice

Topics

Capital Budgeting Decisions
- NPV
- Payback Period
Capital Structure
Dividend Decision
- Financial Management
Financial Management
Financial Ratios
Sources Of Finance
Working Capital Management

PracticeBusiness FinanceSources Of Finance

Sources Of Finance in Business Finance : Practice MCQ Questions & Answers with Explanations

1 practice sets · Page 1 of 1

Business FinanceEasySources Of FinanceEquity And Debt

1.

Which of the following is a long-term source of finance?

A

Commercial paper

B

Trade credit

C

Debentures

D

Cash credit

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.