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प्रश्न
Why do businesses need funds? Explain.
उत्तर
The following are the reasons why a business needs funds.
(a) Fixed capital requirements: For setting up a business, fixed assets such as building, machinery, furniture, and fixtures are required. The requirement of funds to purchase these assets is known as fixed capital requirement. The level of requirement of funds depends upon the size and nature of business.
(b) Working capital requirements: Firms require funds for financing their day-to-day operations such as the purchase of raw materials and payment of wages to workers. The requirement of funds for such operations is known as the working capital requirement.
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संबंधित प्रश्न
The _______ means mix‐up of various sources of funds in desired proportion.
Match the correct pairs of words from group 'A' and group 'B'.
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Group A
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Group B
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| (a) Retained profits. | (1) Share warrant holder | |
| (b) Small depositors |
(2) Borrowed capital
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| (c) Dividend coupon |
(3) Deposits less than Rs. 25000
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| (d) Returns on shares |
(4) Interest
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| (e) Bear | (5) Expects rise in price of security. | |
| (6) Ploughing back of profit | ||
| (7) Expects fall in price of securities. | ||
| (8) Deposits less than Rs. 20,000. | ||
| (9) Share certificate holder | ||
| (10) Dividend | ||
State, with reasons, whether the following statements is True or False.
A private company cannot accept deposits from public.
Multiple Choice Question:
Funds required for purchasing current assets is an example of ______
Multiple Choice Question:
The maturity period of a commercial paper usually ranges from
Multiple Choice Question:
Internal sources of capital are those that are ______
What is business finance?
List sources of raising long-term and short-term finance.
What are the advantages and limitations of commercial paper?
Choose the Correct Answer.
Debenture holders are entitled to a fixed rate of _________
Choose the Correct Answer.
Equity shareholders are the __________
Write short notes on debentures.
Define Business finance.
For which purpose fixed capital is needed in business?
What do you mean by the working capital requirement of business?
Business firm gives green signal to the project only when it is profitable.
