 and part 2 will discuss about sources of business finance. Sources of business finance may be discussed from three various angles and there on the basis of period, on the basis of ownership and on the basis of source of generation. First of all, on the basis of period. The requirements of finance may be divided into three and number one of them is sources of long term finance. Finance raised for more than 5 years is called long term finance. Sources of long term funds are equity shares, appearance shares, dividends shares, loan from financial institution, retain earnings, etc. Long term funds is required for acquiring fixed assets, expansion of business, etc. Then sources of medium term finance. Funds received for more than 1 year but less than 5 years is called medium term funds. Sources of short term funds are debentures, public deposit, loan from banks, lease financing, etc. It is required for introduction of new product, upgradation of technology, investment in working capital, advertisement and sales promotions, etc. Then the third one is sources of funds for short term finance. Fund raised for a maximum period of 12 months that is 1 year is called short term funds. Various sources of short term funds are cash credit, overdraft, discounting of bills, commercial papers, customers, brands, etc. Short term funds are required in a business for meeting day to day expenditure like payment of salaries, payment of debt, payment of debt creditors, etc. So, we saw that 3 sources of money are required. 1. Dirkha Kalin, Bitta, Mada Kalin Bitta and Hasra Kalin Bitta. Dirkha Kalin Bitta is a way of selling down the money. ไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไไ participants have to be paid, even though they are supporters of Powers, they have to rest. On the basis of onersee, business finance may be divided into two and they are a source of ranch and borrowed finance, Oner's fund is the fund contributed by the owners This fund remains invested in the business for long period of time. Sources of ownership funds are equity shares, referentials and retained earnings. Sources of borrowed funds. It is the part of capital which is borrowed from the outsiders. Borrowed funds are raised by the way of loans from public and credit from banks and other financial institutions. Further sources of borrowed funds are debentures, public deposit, banks and financial institutions, etc. On the basis of sources of generation, business finance may also be divided into two and they are internal sources of funds, external sources of funds. Funds which are generated from within the business organization is called internal funds. Internal sources of funds are owner's funds, retained profit, sales of stock, sales of fixed assets, debt collection, etc. External funds. External sources of funds. Funds which are raised from the outside sources are called external funds. Debentures, term loans, public deposit, etc. Are some examples of external sources. Besides these classifications of the sources of funds depending upon geographical location, business funds may be classified as foreign and foreign funds and domestic funds. Funds collected from abroad by issuing international instruments are known as foreign funds and funds located from the market of own country is known as domestic funds. Here the part 2 has been ended and the part 3 will discuss about methods of raising various funds.