ObjectiveMcq
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Which of the following is a long-term source of finance?
Correct Answer: C — Debentures
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.