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Unformatted text preview: Commercial banks - they provide loan for financing the working capital needs of the company for which they charge some predefined interest rate in return additional to the principal amount. Financial institutions - apart from long term finances, financial institutions also offers short -term finances to the business corporations for funding their short term business operational requirements. The choice of long-term financing - usually large corporations eyeing into new markets exploring more opportunities, involved in large capital investment projects and involving huge investment in fixed assets go for long term financing. Sources of long term financing are - Debt and Equity. Financing by long-term interest loans to finance long-term investment projects and fixed assets. Equity- By going for initial public offer and diluting the stake of company to raise funds...
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This note was uploaded on 05/07/2010 for the course ACCOUNTING ACC225 taught by Professor Professor during the Spring '10 term at University of Phoenix.
- Spring '10