Sources of Business Finance
Commerce ⇒ Business Studies
Sources of Business Finance starts at 11 and continues till grade 12.
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See sample questions for grade 11
A company issues debentures to raise funds. Is this an example of owned capital or borrowed capital?
Distinguish between preference shares and debentures on the basis of voting rights.
Explain any two demerits of raising funds through equity shares.
Explain any two limitations of raising funds through debentures.
Explain the concept of 'venture capital' as a source of business finance.
A company issues debentures to raise funds. Is this an example of owned capital or borrowed capital?
A company needs to purchase machinery but does not want to invest a large sum upfront. Which source of finance is most suitable? (1) Trade credit (2) Lease financing (3) Public deposits (4) Retained earnings
A company wants to avoid fixed interest payments and dilution of control. Which source of finance is most suitable? (1) Equity shares (2) Debentures (3) Retained earnings (4) Public deposits
A company needs to purchase machinery but does not want to invest a large sum upfront. Which source of finance is most suitable? (1) Trade credit (2) Lease financing (3) Public deposits (4) Retained earnings
A company wants to avoid fixed interest payments and dilution of control. Which source of finance is most suitable? (1) Equity shares (2) Debentures (3) Retained earnings (4) Public deposits
Which of the following is a long-term source of finance? (1) Commercial paper (2) Public deposits (3) Equity shares (4) Trade credit
Which of the following is a source of finance available only to joint stock companies? (1) Trade credit (2) Equity shares (3) Bank loan (4) Lease financing
Fill in the blank: ________ are financial institutions that provide long-term finance to industries in India.
Fill in the blank: ________ is a negotiable instrument issued by a company to raise short-term funds from the public.
Fill in the blank: ________ is a source of finance where a business can withdraw more money than what is available in its current account.
Fill in the blank: ________ is a source of finance where a business receives advance payment from its customers.
Is factoring considered a source of short-term finance? (Yes/No)
Is it correct to say that commercial banks provide both short-term and long-term finance? (Yes/No)
Is it correct to say that debentures are a form of borrowed capital? (Yes/No)
Is it correct to say that retained earnings are a cost-free source of finance? (Yes/No)
