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Define: Permanent asset investments Temporary asset investments Permanent sources of financing Temporary sources of financing Spontaneous sources of financing

Finance Jan 04, 2021

Define:

Permanent asset investments
Temporary asset investments
Permanent sources of financing
Temporary sources of financing
Spontaneous sources of financing

Expert Solution

1.permanent asset investments are asset investments where the company try to hold for more than one year.

2.temporary asset investments are those investments as current assets which is not possible to replace in that current year. They are liquid in nature.

3.permanent source of financing is termed as longer source. It includes both long term debt and equity. Term loans are its example.

4.temporary source of financing are short term financing like commercial paper , loan from banks etc. Thus these are current term financing which are not included in spontaneous source.

5.spontaneous source of financing are just happening.these are not in regular . And not asper daily operations of a company. They not needed any action by the firm.happens spontaneously.sundry creditors is an example.

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