Busıness Fınance Iı Deneme Sınavı Sorusu #1008053

What is long term financing?


The long-term financial requirements are the internal sources such as retained earning and depreciation provide financing to the corporate.

The long-term financial requirement means the finance needed to acquire land and building for business concern, purchase of plant and machinery and other fixed expenditures.

Long term financing  is legal and tax issues.

Long term financing  is bank lending capacity and relation with banks.

The Long term financing is based on the same principle as the revolving loans, but the limit of the credit is set as a debit of a company’s current account.


Yanıt Açıklaması:

The long-term financial requirement means the finance needed to acquire land and building for business concern, purchase of plant and machinery and other fixed expenditures. Long-term loans (payback period over 5 years, up to about 30 years such as for mortgage credits.

 
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