Business Studies

On basis of time period, the different sources of funds can be categorized into _____ categories.


ANSWER

Three


SOLUTION
Sources of funds can be classified into three categories on the basis of the duration of the financing available. They are : 
Long-term sources: These are for a long period of time, exceeding 5 years.
Medium- term sources : These are for a medium period of time, i.e more than a year and less than 5 years.
Short- term sources: These are for a short period of time, i.e not exceeding one year.
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