The directors of XYZ LTD .have decided to expand the  business activities which need cost of Rs 30 lakhs. As a finance manager, advice the directors about the various sources to raise finance for this purpose.

Kalyan,

The directors choose the source to raise funds on the basis of various factors. These factors are as follows.

i) On the basis of ownership.
ii) On the basis of time period.
iii) On the basis of source of generation.

These topics are covered in our revision notes. Refer to the following link to view the same.

https://www.meritnation.com/cbse/class11-commerce/revision-notes/business-studies/business-studies/sources-of-business-finance/1161_5371

 

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