CHAPTER-7 SOURCE OF BUSSINESS FINANCE * INTRODUCTION * NATURE AND SIGNIFICANCE OF BUSINESS FINANCE * CLASSIFICATION OF SOURCES OF FUNDS * Periods * Ownerships * source of generation basis * OWNER’S FUNDS * Equity shares * Preference Shares * Retained Earnings * Global depository receipts * American depository receipts * Indian depository receipts * BORROWED * Debentures and bonds * Loan from commercial banks * Public Deposits *Trade credit * Inter corporate deposits * SOURCES OF FINANCE * Factoring * Lease financing * Commercial paper * FACTORING AFFECTIN CHOICE OF SOURCE OF INTRODUCTION Every business enterprise, weather big or small, needs financed carry on its operations. The importance of finance increased tremendously these days because of mass production and use of capital intensive techniques. As a result finance is considered as the life blood – of any business. NATURE AND SIGNIFIANCE OF BUSSINESS FINANCE Business FINANCE REFERS TO THE MONEY REQUIRED FOR CARRYING OUT BUSSINESS ACTIVITIES NEED FOR BUSINESS FINANCE Almost all business activities require some finance. Finance is needed: To start and establish a business To run day to day activities of business like payment for raw materials, salaries etc. To modernize, expand and diversify the business Hence the availability of adequate finance is very crucial for the survival and growth of a business. The finical needs of a business can be classified into two categories : 1. FIXED CAPITAL REQURINMENT
* INTRODUCTION * NATURE AND SIGNIFICANCE OF BUSINESS FINANCE * CLASSIFICATION OF SOURCES OF FUNDS * Periods * Ownerships * source of generation basis * OWNER’S FUNDS * Equity shares * Preference Shares * Retained Earnings * Global depository receipts * American depository receipts * Indian depository receipts * BORROWED * Debentures and bonds * Loan from commercial banks * Public Deposits *Trade credit * Inter corporate deposits * SOURCES OF FINANCE * Factoring * Lease financing * Commercial paper * FACTORING AFFECTIN CHOICE OF SOURCE OF CHAPTER-7 SOURCE OF BUSSINESS FINANCE INTRODUCTION Every business enterprise, weather big or small, needs financed carry on its operations. The importance of finance increased tremendously these days because of mass production and use of capital intensive techniques. As a result finance is considered as the life – blood of any business. NATURE AND SIGNIFIANCE OF BUSSINESS FINANCE Business FINANCE REFERS TO THE MONEY REQUIRED FOR CARRYING OUT BUSSINESS ACTIVITIES NEED FOR BUSINESS FINANCE Almost all business activities require some finance. Finance is needed: To start and establish a business To run day to day activities of business like payment for raw materials, salaries etc. To modernize, expand and diversify the business Hence the availability of adequate finance is very crucial for the survival and growth of a business. The finical needs of a business can be classified into two categories : 1. FIXED CAPITAL REQURINMENT
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