ECONOMICS

Detailed explanation-1: -These can be bank loans, venture capital from investors or capital acquired in exchange for company shares.

Detailed explanation-2: -External sources of finance refer to money that comes from outside a business. There are several external methods a business can use, including family and friends, bank loans and overdrafts, venture capitalists and business angels, new partners, share issue, trade credit, leasing, hire purchase, and government grants.

Detailed explanation-3: -Capital market, special financial institution, banks, non-banking financial companies, retained earnings and foreign investment and external borrowings are the main sources of long-term finances for companies.

Detailed explanation-4: -Long-term sources Sources of long-term external debt finance include: loan capital/long-term bank loans. share capital/equity finance. government grants and subsidies.