Question

“A business organization requires both long term and short term capital which can

either be on the form of ownership capital and borrowed capital.” Comment upon

the statement

Answer 1

To start a business, the owner can be a sole proprietor must contribute to his business capital in the form of cash/non-current asset such as car for business to go on. The owner cam borrow a sum of money from bank, prior that it can pay on time as agreed upon with the bank.