[Full Video] Introduction and Sources of Business Finance CI XI Business Studies By:- Ruby Singh #Finance

today we will be starting with the seventh chapter that is sources of business Finance now first of all we need to understand that why do we need

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance what is Finance

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is nothing else but money take a humare business connect le a why do we need money right now basically there are two requirements your fixed Capital

requirements and your working Capital requirements fine so we basically need Finance to fulfill our working Capital requirements and the

fixed Capital requirements now what our fixed Capital requirements that is the amount of money that that the business requires to acquire fixed Assets okay that is your building your plant and machinery cage it may be a breaker shaker Naegele by

such a you those common both their money fixed Capital requirements and these fixed Capital expenses they are not incurred on daily basis okay they are incurred once in a long period of time and then we have our working Capital requirements working

Capital requirements they are basically the amount of money which is required to carry out your day-to-day expenses of the business all right making the purchases of raw material and for the upkeep of the fixed Assets that we’ve bought right so basically it

is to fulfill these two requirements that is your fixed Capital requirement and the working Capital requirement that we that we need none;">Financed right now after that coming down to classification of sources of Finance in this chapter basically we will be studying what are the different

sources from where we can get from from where the business can get money right now the basic the basis on which we can classify Fitness sources of Finance number one is on

the basis of duration that is a time period for which we require money right it can be categorized into three parts that is your long-term Finance long-term sources of

Finance medium-term sources of Finance and

short-term sources of Finance right not long term sources of none;">Finance would would be where in when we require money for a period more than three to five years okay now if we are able to if I am taking a Loan let us say from the bank for a period of about ten years that is a long term source of

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance right medium term source of Finances medium term source of

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance when we require money for a period more than one year but less than three to five years okay and when we talk about short term sources of

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance that is from where we can get money only for a period less than one year all right I repeat long term sources of text-decoration: none;">Finance which are going to give me money for a period more than three to five years right medium term sources of Finance which are going

to give me money for a period more than one year but less than three to five years and short term sources of Finance which are going to give me money for a period less than

one yeah right secondly we can also categorize them on the basis of ownership all right it can be categorized into two that is your owners fund and your borrowed funds okay owners funds mclubbe owner could cabeza TK snake is a bar say range nahi kiya here all right many business rukia maripaz couch

passage Amato many surrogates are a businessman a guru that is your owners fund right now what are the features or characteristics of owners funds number one it’s a permanent source of none;">Finance Jeff O’Meara could cap si many open a businessman Nagaya he the jab tak mera business bonding or a toccata miageta it is going to remain permanently invested in the business that’s why it’s a permanent source of

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance TK then no charge on Assets is Comet Lovejoy Iacocca fees a guy a word Sunnah Milligan no charge on Assets it’s comical yeah Kabhi up a girl with harlot a paisa I am sure you must

have heard of this term that if you take if you take if you borrow money from someone else he also needs a security key RP pesos co-op as okay so he asked you to mortgage your Assets give me regular both there so we say that it puts a charge on the Assets the Java

cases episode harlot you who you have to more than often you have to mortgage your acid but in case of owner foreign owners foreign Haggar apply pass up new business there is no need to mortgage any Assets so it does not create any charge on the Assets last is your

control of management the control of the business affairs remains in the hands of the owners okay if you have if you more than 50% of the Capital if it belongs to you then the entire control of the business is going to be in your hands 51% Shares like Arabica

passes the control of the business is going to be in your hands contrary to this we have borrowed funds borrowed funds mclubbe joe merrick could give me a mannequin or say range here in case he also baroque here financial institutions they borrow persecute banks I borrow collective friends relative

Sbarro constructive right but whose key features carry it is not a permanent source of Finance cue because if I have borrowed it from someone I’ll have to return it I’ll have to

repay it fine then I’ll have to repay it not only the principal amount I’ll also have to pay interest a PCC may pass out harlot or nobody give you gives you money free of cost the charge and interest for the same all right so it’s not a permanent source of

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance because the principal amount has to be paid back not only the principal amount but also the interest also has to be paid then it creates a charge over the Assets if you

are borrowing money from someone you may have to mortgage your Assets no control on the management we treat these lenders or Creditors they are our outs there they are treated as Outsiders they do not have a right to participate in the management of the company

because up the peasants a set of 30 lyrically with hard later you are going to repay it alright so this was the basic difference between your owners funds and your borrowed funds third basis is on the basis of generation yet though you engage my internal sources of

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance and external sources of Finance internal sources

meaning something which is generated from within the organization find for example a germane retained earnings yamaga ssamjang aapko retained earnings is that if I have owned huge amount of Profit to Merriman IKS comet shareholders my bottom what will I do is I will reinvest this

in the business they cast business key betterment Kelly a ornate plant and machinery critically many have no Profit to Baris re-invest Katya this is an internal source of engine none;">Finance external sources of Finance is something which is arranged from outside the organization Loans from banks from financial

institutions these are your external sources of Finance so we’ve covered basically on three bases we have classified the different sources of

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance on the basis of duration short term medium term and long term on the basis of ownership owners funds and borrowed funds and on the basis of generation internal and external

alright