Financial requirement of Business:
Financial requirement of a business might be for following reason:
A. For buying fixed assets:
For opening business, business requires fund for buying fixed assets such as machinery, land, plant and building. This prerequisite might be of 10-15 years.
B. For Advertising and Other Revenue expenditures:
At time, business needs money for advertising and other revenue expenditures. This will be medium term financial requirements.
C. Short term financial requirements:
Short term financial requirements are for fulfilling the working capital necessities. In this, we administer to get short term loan that will be repayable within 1 year.
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Non-current assets will be apt to be the usual items like machinery and buildings. Cash Flow from financing activities is referred with the long-term financing of the business.
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