Long-Term Sources of Business Finance — Chapter Summary
Telangana Open School (TOSS) · Class 12 · Business Studies
Summary of Long-Term Sources of Business Finance for Telangana Open School (TOSS) Class 12 Business Studies. Every business needs funds to run and grow.
Interactive on Super Tutor
Studying Long-Term Sources of Business Finance? Get the full interactive chapter.
Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for chapter summary and more.
Free trial, no card needed.
Overview
Every business needs funds to run and grow. While some funds are needed for short periods, others are required for long-term use—typically more than one year. These long-term funds are essential for purchasing fixed assets like machinery and buildings, funding research and development, or supporting
Key Concepts
Funds required for more than one
Funds required for more than one year, used to purchase fixed assets, support expansion, modernization, or fund research and development. Also known a
Profits not distributed as dividends but
Profits not distributed as dividends but kept in the business to reinvest. It is an internal source of long-term finance.
Equity shares represent ownership with voting
Equity shares represent ownership with voting rights and variable dividends. Preference shares offer fixed dividends and repayment priority but no vot
Debt instruments issued by companies
Debt instruments issued by companies to raise long-term funds. They carry a fixed interest rate and are secured against company assets.
Includes Global Depository Receipts (GDRs)
Includes Global Depository Receipts (GDRs), American Depository Receipts (ADRs), External Commercial Borrowings (ECBs), and FCCBs, used to raise funds
Learning Objectives
- Understand the meaning and need for long-term finance
- Identify and explain internal and external sources of long-term finance
- Compare equity shares, preference shares, and debentures
- Analyze the merits and demerits of each source of finance
- Explain the factors affecting the choice of a source of funds
Frequently Asked Questions
What are the important topics in Long-Term Sources of Business Finance for Telangana Open School (TOSS) Class 12 Business Studies?
How should I revise Long-Term Sources of Business Finance for the Telangana Open School (TOSS) Class 12 board exam?
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
More resources for Long-Term Sources of Business Finance
For serious students
Get the full Long-Term Sources of Business Finance chapter — start free.
Quizzes, flashcards, an AI doubt solver and a study plan for Telangana Open School (TOSS) Class 12 Business Studies. Free to start, no card needed.