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| 1. |
What are the features of long term finance |
| Answer» 1. Finance required for a period more than 5 years is known as long-term finance. According to certain authorities finance for a period exceeding ten years is known as long-term finance.2. Long-term finance is required for making investment in fixed assets, such as land, building, plant, machinery, vehicles equipments, furniture etc.3. Long-term finance meets long-term financial needs of the business. These needs are permanent needs of the business.4. Fixed assets purchased out of long-term finance are revenue generating.5. Long-term finance once invested in the business cannot be taken back without dissolving the business or scaling down the business.6. Long-term finance is acquired through issue of shares, debentures or loan from specialized financial institutions. | |