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Ways of acquiring funds to meet short-term fund requirements

The firm has available to it a number of possible ways of acquiring funds to meet short-term shortfalls, including unsecured and secured loans. Explain

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Dear student,

The firm has available to it a number of possible ways of acquiring funds to meet short-term shortfalls, including unsecured and secured loans. Explain

Sometimes, the firm is in need of short term funds to meet its day to day operations i.e.
1. it has to pay off its creditors on due dates,
2. it has to pay interest on loan on due dates,
3. It has to pay rent to the factory and office building on specific dates.
4. It has to pay salary to its workers and employees on specific dates.
5. And any other payment which is obligated to pay on specified dates.
If the ...

Solution Summary

The answer contains the circumstances under which short term funds are needed by the firm and the ways by which the firm can acquire the funds for short term short fall of funds.

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