Classification of sources of finance, Financial Management

CLASSIFICATION OF SOURCES OF FINANCE

In the market, there are several sources of finance, with conflicting risk characteristics and with conflicting cost structures. Numerous management experts have tried to categorize them into numerous categories based on the time factor, source of generation, ownership pattern, and convenience.  The resulting classification of finance is as follows:

•On the basis of ownership - own capital and borrowed capital

•On the basis of period - long term, medium term and short term

•On the basis of convenience - security financing (shares, debentures etc),

Internal financing (Depreciation funds, retained earnings, reserves etc),

Loan Financing (short term loans, medium term loans and long term loans)

•On the basis of source of generation - internal sources and external sources

Posted Date: 10/15/2012 8:38:56 AM | Location : United States







Related Discussions:- Classification of sources of finance, Assignment Help, Ask Question on Classification of sources of finance, Get Answer, Expert's Help, Classification of sources of finance Discussions

Write discussion on Classification of sources of finance
Your posts are moderated
Related Questions
DEFINITION OF BUDGETARY CONTROL As per the ICMA, BUDGETARY CONTROL is the establishment of budgets, relating the tasks of executives to the requirements of a policy, and the c

Step by step approach to completing a statement of cash flows Step by step approach to completing a statement of cash flows Step 1

what is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million,if the average interest rate on debt is 8.5% and the marginal tax rate i

Investment Strategy OF HEDGE FUNDS After the Funds are raised from genuine investors, the next step for Hedge Funds is to invest them as per the investment objectives and strat

1.      Consider the following two investment alternatives   Net cash flow   End of year Machine A Machine

Ask question #Minimum 100 words accepted

credit limit decision bajaj electronics company

What are the Predator shareholders Predator company's shareholders mayn't approve the bid for various reasons. Reduction in EPS If consideration is

What is the matching principle of working capital financing?  What are the advantages of following this principle? The matching principle is while short-term financing is employe

Dividend Decision: The Dividend Decision is a decision taken by the directors of a company. It relates to the timing of any cash payments and amount made to the company's stoc