Question
Which sources provide the supply for long-term funds?

Answer

Long-term funds are those funds which will be kept in business for a period exceeding five years. These funds can be raised both from internal as well as external sources. Internal sources of long-term funds are:
  1. Equity shares
  2. Preference shares
  3. Retained earnings
  4. External sources of long-term funds are:
  5. Debentures
  6. Long-term loans from banks and financial institutions

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