NCERT · Class 11 · Business Studies · Sources of Business FinanceWhich of the following sources of finance is considered a 'permanent' source of capital?
Step-by-Step Solution
Equity share capital is a permanent source of capital because the company does not refund this money during its lifetime, except in the case of liquidation.
Detailed Options Breakdown
Option : Debentures
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 1: Equity Shares (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Bank Overdraft
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Sources of Business Finance.
Option 3: Commercial Paper
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.