Resource Mobilization — Entrepreneurship STD 11 Commerce — Question

Long term capital can be obtained through equity share, preference shares, debentures, as loans from financial institutions, owner's capital, undistributed profit of the enterprise, etc.
A form of secondary protection sometimes required by a bank and intended to guarantee a borrower's performance on a debt obligation. The primary security on a substantial business loan is typically the thing that is being financed, such as a factory, company car or shipment, but secondary or collateral security might also be requested by a bank to help assure that the loan will be repaid.