Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MANAGEMENT2 Marks
Question
How does the source of capital differ based on the duration of capital structure?
✓
Answer
If capital is required on a permanent basis, the company will prefer to issue equity shares. On the other hand, if capital is required for a short period, company will procure capital through debentures and preference shares.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.