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Question
Fixed capital is raised through ______ sources of finance.
Fill in the Blanks
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Solution
Fixed capital is raised through long-term sources of finance.
Explanation:
Fixed capital is required to purchase long-term assets like land, buildings, and machinery. Therefore, it is raised through long-term sources of finance such as:
- Equity shares
- Preference shares
- Debentures
- Long-term loans from banks or financial institutions
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