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Question


The directors of a famous I.T company have decided to set up a new firm in Pune, with an estimated cost of rupees of eight crores. Which of the following sources of finance would be most suitable?


Options:
A .   Public deposits, Short-term loans from commercial banks, Trade credit 
B .   Equity shares, Preference shares, Debentures 
C .   Trade credit, Factoring, Banks
D .   Commercial papers, Debentures, Equity shares
Answer: Option B
:
B

Setting up of a plant means funds are required for investment in long-term assets. There are various sources of long-term finance, such as equity shares, preference shares, and debentures.



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