Describe appropriate long-term sources of finance for a large organisation. - Scottish Highers Business Management - Question 3 (a) - 2018

Equity financing involves selling shares in the organisation to raise capital. This investment does not need to be repaid but gives investors ownership stakes in the company.

Venture capital is investment provided by investors to startups and small businesses with perceived long-term growth potential. In exchange, the investors receive equity.

Debentures are long-term securities yielding a fixed rate of interest, issued by a company and secured against its assets. They can be a stable source of finance without giving up ownership.

A mortgage is a loan specifically for buying property, where the property itself serves as collateral. It provides a long-term funding solution for real estate investments.

These are funds provided by the government that do not require repayment. They can help finance projects that serve public interests, though they may come with conditions.