MP Board · Class 11 · Business Studies · Sources of Business FinanceFunds required for a period exceeding 5 years are classified as:
Step-by-Step Solution
Long-term finance refers to capital required for a period exceeding 5 years, typically used for purchasing fixed assets or major business expansion.
Detailed Options Breakdown
Option : Short-term finance
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 1: Medium-term finance
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 2: Long-term finance (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Working capital
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
💡 Study Guide: This question tests core syllabus concepts from Sources of Business Finance. For formulas, key summaries, and mock exam reference guides, read the full Sources of Business Finance Revision Notes.