{"id":24813,"date":"2024-04-15T06:51:42","date_gmt":"2024-04-15T06:51:42","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=24813"},"modified":"2024-04-15T06:51:42","modified_gmt":"2024-04-15T06:51:42","slug":"which-of-the-following-sources-is-not-use-for-medium-term-financing-a-issue-of-equity-shares-b-issue-of-debentures-c-term-loans-from-banks-d-sale-of-current-asset","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-sources-is-not-use-for-medium-term-financing-a-issue-of-equity-shares-b-issue-of-debentures-c-term-loans-from-banks-d-sale-of-current-asset\/","title":{"rendered":"Which of the following sources is not use for medium term financing? A. Issue of equity shares B. Issue of debentures C. Term loans from banks D. Sale of current asset"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9e4d77d160a\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Issue of equity shares                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Issue of debentures                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Term loans from banks                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"true\">\r\n                    Sale of current asset                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is D. Sale of current assets.<\/p>\n<p>Medium-term financing is a type of financing that is used to fund projects or activities that have a lifespan of more than one year but less than five years. It is typically used by businesses to finance the purchase of equipment, the expansion of operations, or the acquisition of another company.<\/p>\n<p>There are a number of different sources of medium-term financing, including:<\/p>\n<ul>\n<li>Issue of equity shares: This involves selling shares in the company to investors. This can be a good way to raise capital, but it also dilutes the ownership of existing shareholders.<\/li>\n<li>Issue of debentures: This involves borrowing money from investors by issuing bonds. This is <div class=\"youtube-subscribe-container\">\r\n       <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>  <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> a less risky option for investors than equity shares, but it also costs the company more in interest payments.<\/li>\n<li>Term loans from banks: This involves borrowing money from a bank for a fixed period of time. This is a relatively safe option for both the company and the bank, but it can be expensive.<\/li>\n<li>Sale of current assets: This involves selling assets that the company already owns, such as inventory or equipment. This can be a quick way to raise cash, but it can also damage the company&#8217;s long-term prospects.<\/li>\n<\/ul>\n<p>Of the options listed, only the sale of current assets is not a typical source of medium-term financing. The other options are all common sources of medium-term financing.<\/p>\n<p>The sale of current assets is typically used to raise short-term cash, rather than medium-term financing. This is because current assets are typically expected to be converted into cash within a year. If a company sells current assets to raise cash for a medium-term project, it will need to replace those assets in the future, which can be expensive.<\/p>\n<p>In conclusion, the correct answer is D. Sale of current assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[695],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following sources is not use for medium term financing? A. Issue of equity shares B. Issue of debentures C. Term loans from banks D. 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