Which one is not a source of long term finance: a. Equity Shares b. Debentures c. Preference Shares d. Commercial Papers e. Reserves and Surplus

d.Commercial paper

Ans..(d). Commercial paper

D

d

D. Commercial paper- it is for shorterm financing.

Option 'd' is not a source of long term finance.

Answer is D-Commercial Papers

OPtion D : Commercial Papers

Sir

I fully agree with option D. I want to add that eqity shares are the safest and best option for long term finance more so when the interest rates are high and the firm has a good reputation with investors. Only when option a is not available for long term finance one should go for options b and c.

e