Sources of Long Term Finance
Based upon the time, the financial resources may be classified into long term and short term sources of finance. Long term sources of finance are those that are needed over a longer period of time – generally over a year. A business requires funds to purchase fixed assets like  land and building, plant and  machinery, furniture etc. These assets may be regarded as the foundation of abusiness. The capital required for these assets  is called  fixed capital.  A part of the working capital is also of a permanent nature. Funds  required for this part of the working capital and for fixed capital is called long term  finance. The sources from which a finance manager can raise long-term funds are discussed below: 1. Issue of Shares The amount of capital decided to be raised from members of the public is divided into units of equal value. These units are known as Continue reading