Advantages and Disadvantages of Long Term Financing (Essay Sample)

Writing instructions
“A firm should consider carefully the advantages and disadvantages of different forms of long term financing; as such financing decisions have long term impact on the firm’s investing decisions.” Critically evaluate the above quotation in the light of the overwhelming evidence of different forms of long term financing methods available for consideration by the business entities. In this section students should demonstrate an understanding and knowledge of the theoretical aspects that underpin the long term financing methods. The evaluation should be supported with relevant, contemporary, academic research that has been undertaken within this field and should be referenced accordingly. Ensure the response does not become overly descriptive within its approach, rather attempts to incorporate a critical perspective integrating relevant academic literature, allowing logical conclusions to be proposed.