An example of long-term source of fund for an entrepreneur is____________
Answer Details
One example of a long-term source of funding for an entrepreneur is a debenture.
A debenture is a type of loan that is issued by a company or organization to raise money. Debentures are usually long-term investments, meaning that they have a maturity date of several years in the future.
When an entrepreneur issues a debenture, they are essentially borrowing money from investors who buy the debenture. In exchange, the entrepreneur agrees to pay back the principal amount of the loan plus interest over a set period of time.
Compared to other types of financing options, such as trade credits or overdrafts, debentures can offer a more stable and predictable source of funding for entrepreneurs. Additionally, because debentures are often secured by assets, they can be a more attractive option for investors looking to minimize risk.