Question: State whether the following statements are true or false. If false, explain why. (a) Long-term sources of finance are usually used to finance working capital.

State whether the following statements are true or false. If false, explain why. 

(a) Long-term sources of finance are usually used to finance working capital. 

(b) A trade receivables collection model seeks the efficient management of trade receivables by balancing the benefits of extra credit sales against the extra costs of those sales.

(c) Two common techniques of inventory control are the economic order quantity model and the just-in-time approach. 

(d) There are four external long-term sources of finance: retained profits, leasing, share capital and loan capital. 

(e) A rights issue, a public issue and a placing are three major ways in which a company can raise share capital.

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