ENTREPRENEURSHIP

Detailed explanation-1: -Long-term finance can be defined as any financial instrument with maturity exceeding one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.

Detailed explanation-2: -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-3: -Long term financing are provided to those business entities that face a shortage of capital. This type of financing may be needed to fund expansion projects, purchase fixed assets, develop a new product, R&D, Mergers and acquisitions etc. The methods of financing these types of projects will generally be quite complex.

Detailed explanation-4: -Long-term loans tend to carry less risk for the borrower, but interest rates tend to be at least slightly higher than for short-term loans. Long-term financing is typically used to cover equipment purchases, vehicles, facilities, and other assets with a relatively long useful life.

Detailed explanation-5: -The three major sources of corporate financing are retained earnings, debt capital, and equity capital.