A business organization can obtain long term financing through
Answer Details
A business organization can obtain long-term financing through the sale of shares. This means that a business can sell ownership stakes in the company to investors in exchange for funds that can be used to finance its operations or investments in the long-term.
When a business sells shares, it is essentially selling a portion of ownership in the company. The investors who purchase these shares become shareholders and have a say in the company's decisions, as well as the potential to earn a return on their investment through dividends or capital appreciation.
Compared to other financing options such as bank overdrafts or credit purchases, selling shares can provide a more stable and long-term source of funding. Bank overdrafts and credit purchases typically provide short-term financing that must be paid back quickly, whereas selling shares provides funds that do not need to be repaid and can be used for long-term investments.
Bureau de change, on the other hand, is not a financing option at all, but rather a type of business that deals in the exchange of one currency for another.
In summary, a business organization can obtain long-term financing through the sale of shares, which involves selling ownership stakes in the company to investors in exchange for funds that can be used to finance its operations or investments in the long-term. This provides a more stable and long-term source of funding compared to other options like bank overdrafts or credit purchases.