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Chapter Summary

Long-Term Sources of Business Finance

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. Key concepts, important points, and chapter overview.

44 questions30 flashcards5 concepts

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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?
Long-Term Sources of Business Finance covers several key topics that are frequently asked in Telangana Open School (TOSS) Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Long-Term Sources of Business Finance — Telangana Open School (TOSS) Class 12 Business Studies?
Understand the core concepts first, then work through the 44 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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