Concept:Short-term capital refers to funds available for a period of less than one year, usually used to meet daily operating expenses.
Explanation:A business needs short-term funds to cover immediate costs such as stock, salaries, and payments to suppliers.
These funds must be repayable within a short period, typically less than one year.
Shares and debentures are long-term sources of capital because they are repaid after many years or not repaid at all.
Leasing is a medium- or long-term arrangement for acquiring assets, not a short-term cash source.
An overdraft allows a business to withdraw more than its bank account balance up to an agreed limit.
It is repayable on demand and is therefore a common form of short-term finance provided by commercial banks.
Answer:B. Overdraft