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Commonly Asked Questions about The two financing are Business Forms

The two forms of business financing are debt, borrowed funds that must be repaid with interest over a stated time period, and equity, funds raised through the sale of stock (i.e., ownership) in the business.
Short-term financing is typically used to cover short-term needs like materials purchases, inventory, and cash flow fluctuations. Long-term financing is typically credit extended for periods over two.
External sources of financing fall into two main categories: equity financing, which is funding given in exchange for partial ownership and future profits; and debt financing, which is money that must be repaid, usually with interest.
All business activities such as planning, organising, managing, controlling, purchasing, selling, directing, marketing, etc. cannot take place without finance. Thus, we can say requirements of funds by business to carry out its various activities is called business finance.