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Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipBusiness Arithmetic5 Marks
Question
State whether the following require small or large working capital. Answer should be SEO supported by a valid reason:
  1. Selling ice-creams.
  2. Following a liberal credit policy.
  3. Dealing in stainless steel wares.
  4. Using capital intensive technology.
✓

Answer

Sources of Long-term Finance
Sources of Short-term Finance
There are a number of sources of Long term finance which are listed below:
Venture capital:
  1. Debentures
  2. Share issues
  3. Owners sawing
  4. Bank loans - medium or long term lons.
  5. Leasing:
  • National level financial Institutions
  • State level Financial Institutions
There are a number of sources of short finance which are listed below:
  1. Trade credit
  2. Bank credit
  • Loans and advances
  • Cash credit
  • Overdraft
  • Dscounting of bills
  1. Customers' advances
  2. Installment credit
  3. Loans from co-operatives

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