BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Equity share capital
|
|
|
Long-term debt
|
|
|
Preference share capital
|
|
|
Retained profit
|
Detailed explanation-1: -Financial obligations that have a repayment period of greater than one year are considered long-term debt. Included among these obligations are such things as long-term leases, traditional business financing loans, and company bond issues.
Detailed explanation-2: -However, debt does not include all short term and long term obligations like wages and income tax. Only obligations that arise out of borrowing like bank loans, bonds payable.
Detailed explanation-3: -Owner’s capital, or owner’s equity, is the amount the owner of a business has invested in it. It is sometimes described as owner’s interest as the investment value represents an owner’s stake in the business. Some businesses may have a single owner, while others may have multiple owners.
Detailed explanation-4: -Solution(By Examveda Team) Commercial papers is not a source of long-term finance. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.