There are three basic rules for financing What economic institutions?

- Fixed asset financing institution by another permanent funds own funds plus long-term loans and medium-term sense.

- Current assets financed by short-term loans.

- We can keep the financing of part of the current assets of permanent funds safety margin and this margin knows Permanent working capital.

Thanks for invitation.

Well, answered by Mr. George

 

Positive results for the institution, the calculation of the financial statements, the strength of the institution's economic activity, and the financial position of the owners and the institution

 Fixed asset 

Current assets

thanx sir 

u asked and answered.....................

Agree with you...thanks for the invitation

The 3 basic are classed as short term, medium term long term. The short term financing options are usually to finance a businesses consumables normally spread over a 12 months period e.g overdraft. The medium term financing are more for bridging the fund gap for asset over 1-5yrs e.g invoice factoring. finally long term financing are for capital spend which require long period e.g bonds/gilts & Mortgage

Current assets financed by short terms Don't go for long terms financed easily Simple planning for financial resources

Matching of sources of funds with uses of funds short term

Matching of sources of funds with uses of funds short term with short term and long term with long term

Stories Shows Events Books Donate Home Economics Politics Culture History Education The Five Institutions of the Market Economy Property, Freedom of Trade, Competition, Division of Labor, and Social Cooperation Friday, November 25, 2016 Henry Hazlitt Henry Hazlitt Economics Market Economy Free Market Competition Private Property Download: Hazlitt - The Foundations of Morality (epub) Hazlitt - The Foundations of Morality (mobi) Hazlitt - The Foundations of Morality (pdf) Let us see what the basic institutions of the market economy are. We may subdivide them for convenience of discussion into (1) private property, (2) free markets, (3) competition, (4) division and combination of labor, and (5) social cooperation. As we shall see, these are not separate institutions. They are mutually dependent: each implies the other, and makes it possible