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Which source is the best source of raising borrowed funds for a business? and why? - Commercial Studies

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प्रश्न

Which source is the best source of raising borrowed funds for a business? and why?

थोडक्यात उत्तर

उत्तर

Loans from financial institutions are the best source of raising borrowed funds for the following reasons:

  1. Financial institutions provide long-term finance, which is not provided by commercial banks.
  2. Many of these institutions provide funds as well as financial, managerial, and technical advice and consultancy to business firms.
  3. Borrowing from financial institutions enhances a company's reputation in the capital market. As a result, such a corporation can readily raise financing from many sources.
  4. Repayment of loans can be made in easy instalments, so it does not prove to be much of a burden on the business.
  5. The funds are made available even during periods of depression when other sources of finance are not available.
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Sources of Raising Capital
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पाठ 10: Sources of Finance - EXERCISES [पृष्ठ १७१]

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गोयल ब्रदर्स प्रकाशन Commercial Studies [English] Class 10 ICSE
पाठ 10 Sources of Finance
EXERCISES | Q 6. ii. | पृष्ठ १७१
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