AP Inter 1st Year Commerce Notes Chapter 8 Sources of Business Finance-I

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 as the life blood of any organisation. The success of an industry depends on the availability of adequate finance.

→ Business units need varying amount of fixed capital depending on various factors such as the nature of business.

→ The purpose of fixed capital for business units to purchase fixed assets like land and building, plant and machinery an4 furniture and fixtures.

AP Inter 1st Year Commerce Notes Chapter 8 Sources of Business Finance-I

→ 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, on the basis of the ownership and source of generation.

→ The funds classified on the basis of 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.

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