NOTES
Subject:
Business Finance
Topic:
1: What is Capital Budgeting?
2: Explain the Payback Period with an example?
3: Difference between NPV & IRR?
4: Importance of Capital Budgeting in decision-
making?
, Q1. What are the sources of long-
term finance?
ANSWER:
Sources of long-term finance include:
Equity shares,
Preference shares,
Debentures or bonds,
Bank loans,
Retained earnings.
Example:
A company planning international expansion
may use retained earnings plus bonds.
Subject:
Business Finance
Topic:
1: What is Capital Budgeting?
2: Explain the Payback Period with an example?
3: Difference between NPV & IRR?
4: Importance of Capital Budgeting in decision-
making?
, Q1. What are the sources of long-
term finance?
ANSWER:
Sources of long-term finance include:
Equity shares,
Preference shares,
Debentures or bonds,
Bank loans,
Retained earnings.
Example:
A company planning international expansion
may use retained earnings plus bonds.
