MANAGEMENT

Detailed explanation-1: -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-2: -The following are the primary sources of debt financing in companies: Loans: Loans are considered as the popular form of debt financing of a company. The business borrows money from banks and other financial institutions. Bonds: The issue of bonds is another common form for raising funds for large companies.

Detailed explanation-3: -Loans. Perhaps the most obvious source of debt financing is a business loan. Entrepreneurs commonly borrow money from friends and relatives, but commercial lenders are an option if you have collateral to put up for the loan.

Detailed explanation-4: -Credit lines, bank loans, and bonds with obligations and maturities greater than one year are some of the most common forms of long-term debt instruments used by companies. All debt instruments provide a company with cash that serves as a current asset.

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