Classification of sources of finance, Financial Management

Assignment Help:

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

Related Discussions:- Classification of sources of finance

Determine the cost of capital in emerging nation, How can we measure a comp...

How can we measure a company's cost of capital in emerging nations, especially when there is no state bond which we could take as a reference? Although there is no state bond w

Common size financial statement, Common Size Financial Statement Common...

Common Size Financial Statement Common Size Financial Statement is a company financial statement that shows all items as percentages of a common base figure. This kind of finan

Define advantages for a firm to cross list its equity shares, Discuss any a...

Discuss any advantages you can think of for a company to (1) cross-list its equity shares on much more than one national exchange, (2) To source new equity capital fro

Statement of cash flows, Statement of Cash Flows A formal statement of ...

Statement of Cash Flows A formal statement of the cash received and disbursed through an organization. The statement of cash flows is separate into three sections that are inve

Emba semster solved IIBM,

Replacement Theory, How is the failure Table for assets that fail suddenly ...

How is the failure Table for assets that fail suddenly constructed?

What is accelerated depreciation, Q. What is Accelerated Depreciation? ...

Q. What is Accelerated Depreciation? Accelerated Depreciation - Method which records greater DEPRECIATION than STRAIGHT-LINE DEPRECIATION in the early years and less depreciati

Foreign exchange - maximum loss, Q. Foreign exchange - Maximum loss? Fr...

Q. Foreign exchange - Maximum loss? From Marton's point of view an adverse outcome is depreciation of the dollar against sterling as this lowers its income when converted into

Personal budget project, 15 points) You need to develop a personal budget. ...

15 points) You need to develop a personal budget. Try to be as realistic as possible. If you are going to school and not working then do some research to find out what salary you w

Required rate of return , Required Rate of Return (R i ) The required...

Required Rate of Return (R i ) The required rate of return (Ri) is the minimum rate of return that a project must generate if it has to receive funds. It’s thus the opportun

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages