Classification of sources of finance, Financial Management


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
The personnel department of a firm is entrusted with the responsibility of recruitment, training and placement of the staff for the firm. The department is also required to critica

The process of securitization can best be understood by taking the following example. Assume that there exists an NBFC which has hire purchase as its major busine

Accounting Rate of Return (ARR): This technique relies on the rate of return every project will earn over its life. It takes the help of accounting profit while calculating the

Directions: Use the information below to calculate the WACC and its components for Hawk Corp. WACC= (%CE)(cost of CE) + (%PE)(cost of PE) + (%D)(cost of D)(1-T)

Income that is received in a fund or by company by providing a service or selling a product, but still has to be received. Mutual funds or other pooled assets that build up income

What are a bank's primary reserves ? When the Fed sets reserve requirements, what is its primary goal? Vault deposits and cash in the bank's account at the Fed are used to pe

What is the Exit strategy for equity stake venture Exit strategy for equity stake venture capitalists and other financiers may include: (i) Selling their shares to the publ

what is the applicability of the operating cycle in a vegetaion farm in Uganda

Blue Sky It refers to laws that safeguard investors from being misled by investment people who misrepresent the significance value of investments to get the money of the finan

What can a financial institution often do for a deficit economic unit (DEU)that it would have difficulty doing for itself if the DEU were to deal directly with an SEU?