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Loans from the financial institutions:
Financial institutions such as the commercial bank life insurance corporation, industries financial development corporation bank of the India also short terms medium terms and long terms loan. this source of the finance is more suitable to meet the medium terms demand of the working capital. Interest is changed on such loan such s loan at a fixed rate and the amount of the loan is to be repaid by the way of installment in a number of the years.
Question 1: (a) Explain fully the difference between ‘Pay-As-You-Use' and ‘Pay-As-You-Go' methods of financing infra-structural projects. (b) Write short notes on any ONE of
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What is the meaning of Financing decision Financing decision of a firm relates to choice of the proportion of these sources to finance investment requirements.
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V ariable Costs It is an expense that varies directly with changes in business activities for example the cost of raw materials rise and decreases as the volume of producti
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