Students can go through AP Inter 1st Year Commerce Notes 8th Lesson Sources of Business Finance-I will help students in revising the entire concepts quickly.
AP Inter 1st Year Commerce Notes 8th Lesson Sources of Business Finance-I
→ Finance is considered the lifeblood of any organisation. The success of an industry depends on the availability of adequate finance.
→ Business units need varying amounts of fixed capital depending on various factors such as the nature of business.
→ The purpose of fixed capital for business units is to purchase fixed assets like land and building, plant and machinery an4 furniture and fixtures.
→ For day-to-day operation purpose working capital is required for business units.
→ The sources of funds can be categorized using different basis viz., on the basis of the period, the basis of the ownership, and the source of generation.
→ The funds classified on the basis of the period are long-term finance, medium-term finance, and short-term finance.
→ The funds are classified on the basis of ownership, owner’s funds, and borrowed funds.
→ The funds are classified on the basis of generation- Internal sources of funds and external sources of funds.