THE DECISION ON FIRM FUNDING

Autor: ILIE RĂSCOLEAN, ILEANA-SORINA RAKOS
Jazyk: angličtina
Rok vydání: 2016
Předmět:
Zdroj: Annals of the University of Petrosani: Economics, Vol 16, Iss 2, Pp 117-128 (2016)
Druh dokumentu: article
ISSN: 1582-5949
2247-8620
Popis: Microeconomic funding decision is complex and must ensure the selection of sources of financing at the lowest cost of procurement, but other economic criteria and constraints to which a company is subject. We distinguish, depending on the destination of the financing sources, two categories: short-term financing sources to cover the needs of the exploitation cycle and medium and long-term funding sources for investment financing. Depending on sources of origin, sources of funding are grouped into equity and borrowed sources. The paper presents the situation of a company that needs borrowed sources of shortterm loans to finance the needs of the operating cycle. Depending on the offer, the bank accesses a short-term loan package considered advantageous for the development and development of the specific activity.
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