The general term for the methods by which a business secures funds, including loans, equity, and government programs.

The general term for the methods by which a business secures funds, including loans, equity, and government programs.

• A. Sources of Finance
• B. Cash
• C. Cash Flow
• D. Assets

Answer: (A)

The concept is about the umbrella term for ways a business raises money. Sources of finance covers all the methods a company can use to secure funds, including loans (debt), equity (selling shares), and government programs (grants or subsidies). It’s not the cash on hand, the timing of cash in and out, or the assets owned. For example, if a firm wants to expand, it might borrow from a bank, issue new shares, or obtain a government grant—each is a different source of finance.

The concept is about the umbrella term for ways a business raises money. Sources of finance covers all the methods a company can use to secure funds, including loans (debt), equity (selling shares), and government programs (grants or subsidies). It’s not the cash on hand, the timing of cash in and out, or the assets owned. For example, if a firm wants to expand, it might borrow from a bank, issue new shares, or obtain a government grant—each is a different source of finance.