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Long-Term Sources of Business Finance — Syllabus

Telangana Open School (TOSS) · Class 12 · Business Studies

What Long-Term Sources of Business Finance covers in Telangana Open School (TOSS) Class 12 Business Studies: 4 topics, for the 2026-27 session.

44 questions30 flashcards5 concepts

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4 Topics · Telangana Open School (TOSS) Class 12 Business Studies · 2026-27

Topics in Long-Term Sources of Business Finance

1

Meaning and Need for Long-Term Finance

  • Long-term finance refers to funds used for more than one year and is also known as fixed capital.
  • It is essential for acquiring fixed assets like land, buildings, machinery, and equipment.
  • Used for major business activities such as expansion, modernization, mergers, and R&D.
2

Internal Source: Retained Earnings

  • Retained earnings are profits kept back in the business instead of being distributed as dividends.
  • Also called ploughing back of profits.
  • No cost of raising funds — no interest or repayment obligation.
3

External Sources: Equity Shares

  • Equity shares represent ownership in the company.
  • No fixed dividend — paid only when profits are available.
  • Dividend is not tax-deductible.
4

External Sources: Preference Shares

  • Preference shares carry preferential rights in dividend payment and capital repayment.
  • Fixed rate of dividend, but only if profits are available.
  • No voting rights under normal circumstances.

Key Concepts

Central concept: Long-Term Sources of Business Finance

Need for Long-Term FinanceInternal SourcesExternal SourcesEquity SharesPreference SharesDebenturesDomestic Financial InstitutionsCommercial Bank Loans

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Frequently Asked Questions

What are the important topics in Long-Term Sources of Business Finance for Telangana Open School (TOSS) Class 12 Business Studies?
Key topics in Long-Term Sources of Business Finance include Meaning and Need for Long-Term Finance, Internal Source: Retained Earnings, External Sources: Equity Shares, External Sources: Preference Shares. Study these first, then practise questions on each for the Telangana Open School (TOSS) Class 12 board exam.
How should I revise Long-Term Sources of Business Finance for the Telangana Open School (TOSS) Class 12 board exam?
Learn the core ideas first, then work through the 44 practice questions on Long-Term Sources of Business Finance. Revise 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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All Telangana Open School (TOSS) Class 12 Business Studies Syllabus

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