Long-Term Sources of Business Finance — Study Plan
Telangana Open School (TOSS) · Class 12 · Business Studies
A step-by-step study plan for Long-Term Sources of Business Finance, Telangana Open School (TOSS) Class 12 Business Studies: what to learn first, what.
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Study Plan
Learn the Theory
Read the textbook chapter carefully. Note down definitions, formulas and key ideas. Focus on: Meaning and Need for Long-Term Finance, Internal Source: Retained Earnings, External Sources: Equity Shares.
Practise
Solve the textbook exercises and extra practice questions. There are 44 questions available for this chapter.
Revise & Test
Revise key points without looking at your notes. Take a practice quiz and mark weak areas for another pass.
Spaced Revision
Come back to Long-Term Sources of Business Finance after a week. Use flashcards for quick recall and try past exam questions on this chapter.
What to Focus On
- Long-term finance is used for more than one year.
- It is also called fixed capital.
- It is essential for purchasing fixed assets and business growth.
- Retained earnings are undistributed profits reinvested in the business.
- No cost involved in raising this capital.
- Helps in expansion and modernisation.
- Equity shareholders are owners of the company.
- Dividends are not fixed and depend on profits.
- No obligation to repay capital during company’s life.
Common Mistakes to Avoid
Equity shares are risk-free for shareholders because the company pays dividends every year.
Preference shareholders can vote in company meetings because they are part-owners.
Debentures are just like shares because both are issued to the public to raise money.
Memory Tips
Meaning of Long-Term Finance
Need for Long-Term Finance
Retained Earnings
Merits of Retained Earnings
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Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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Practice Quiz
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Important Questions
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Revision Notes
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Chapter Summary
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Concept Maps
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Flashcards
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Syllabus
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