List sources of raising long-term and short-term finance.
Sources of raising long-term finance include shares, debentures, long-term borrowings, and loans from financial institutions. These sources fulfil the financial requirements of an enterprise for a period exceeding 5 years and are generally required for the acquisition of fixed assets such as equipment and plant.
Sources of raising short-term finance include trade credit and commercial paper. These sources help meet the day-to-day requirements of business and short-term needs. Such funds can be borrowed at low rates of interest and are appropriate for meeting working capital needs.
Explanation
The textbook clearly distinguishes between long-term and short-term sources based on the period. Long-term sources (exceeding 5 years) include shares, debentures, long-term borrowings, and loans from financial institutions. Short-term sources like trade credit and commercial paper are mentioned for meeting day-to-day requirements. The context also notes that purpose and time period should guide the choice - long-term needs like business expansion should use shares and debentures, while short-term needs can use trade credit and commercial paper.