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Chapters
2: Marketing and Sales
3: Advertising and Sales Promotion
4: Consumer Protection
5: E-Commerce
6: Capital and Revenue Expenditure/Income
7: Final Accounts of Sole Proprietorship
8: Fundamental Concepts of Cost
9: Budgeting
▶ 10: Sources of Finance
11: Recruitment, Selection and Trading
12: Industrial Relations, Trade Union and Social Security
13: Logistics and Insurance
14: Banking
15: Striving for a Better Environment
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Solutions for Chapter 10: Sources of Finance
Below listed, you can find solutions for Chapter 10 of CISCE Goyal Brothers Prakashan for Commercial Studies [English] Class 10 ICSE.
Goyal Brothers Prakashan solutions for Commercial Studies [English] Class 10 ICSE 10 Sources of Finance EXERCISES [Pages 168 - 171]
MULTIPLE CHOICE QUESTIONS
Equity shareholders are called ______.
Owners of the company
Partners of the company
Executives of the company
Guardian of the company
The term 'redeemable' is used for ______.
Preference shares
Debentures
Equity shares
Public deposits
Debentures represent ______.
Fixed capital of the company.
Permanent capital of the company.
Fluctuating capital of the company.
Debt capital of the company.
In which source of finance company has to give fixed rate of interest?
Shares
Debentures
Retained earnings
None of these
Which kind of investment, give investors voting rights, for choosing management people in the organisation?
Shares
Debentures
Retained earnings
None of these
Which of the following is not a feature of debentures?
Part of borrowed funds
Fix maturity
Have voting rights
Charge on assets
For which of the following company has to keep it's assets on mortgage?
Loan from commercial banks
Public deposits
Trade credit
Debentures
______ have the last claim but full voting rights.
Equity Shares
Preference shares
Debentures
Loans from commercial banks
Issue of shares is the most important source of raising long-term finance.
Equity Shares
Preference shares
Debentures
Loans from commercial banks
______ market is thus an institutional arrangement by which savings generated in the country are channelised into avenues of long-term investment.
Capital
Debt
Equity
None of these
Which of the following is/are the characteristics of capital market?
Trading in Securities
Financial Intermediaries
Financial Instruments
All of these
Capital market is also called a ______.
Securities market
Debt market
Loan market
Financial instrument
The major components of capital market are ______.
Primary market
Secondary market
New issue market
All of these
Dividend on equity shares is paid out of the profits ______ paying interest on debentures and ______ dividend on preference shares.
Before, before
After, before
Before, after
After, after
The ______ holders are the main risk bearers. They provide risk capital because when the company fails and is closed, equity shareholders may lose their entire investment.
Equity Shares
Preference shares
Debentures
Loans from commercial banks
Which of the following is also known as hybrid financing?
Equity Shares
Preference shares
Debentures
Loans from commercial banks
This implies procuring cash from a bank in exchange for credit instruments.
Cash credit
Overdraft
Discounting of bills
None of these
It is a formal and revolving credit agreement under which the borrower is allowed to borrow upto the specified limit.
Cash credit
Overdraft
Discounting of bills
None of these
______ are generally secured by assets or guarantees.
Cash credit
Overdraft
Discounting of bills
Loans
They are known as creditorship securities.
Preference shares
Debentures
Equity Shares
Loans from commercial banks
In ______ only buying of securities takes place while in ______ both buying and selling of securities takes place.
Primary market, secondary market
Secondary market, primary market
Equity shares, debentures
Debentures, equity shares
______ is attractive to bold and adventurous investors whereas ______ appeals to conservative and orthodox investors.
Equity share, preference shares
Preference shares, equity shares
Equity Shares, debentures
Debentures, equity shares
______ shareholders are the real risk bearers who enjoy voting rights.
Equity
Preference
Debenture
Bond
The capital of the company is divided into equal parts called ______.
Debentures
Shares
Deposits
Funds
Which of the following are the features of equity shares?
It is a divisible part of the capital of a company.
It confers voting rights on its holder.
It creates certain liabilities on its holder.
Each share have some common number.
Which of the following are the features of preference shares?
Dividend at a fixed rate is payable on these shares before any dividend is paid on equity shares.
Preference shares carry voting rights.
They are a hybrid form of financing.
At the time of winding up the company, capital is repaid to equity shareholders prior to the return of preference capital.
Which of the following are the features of debenture?
Debentures represent borrowed funds.
Interest on debentures is paid at a fixed rate.
Debentures generally carry voting rights.
Debentures does not involve a charge on the assets of the company.
Debentures may be ______.
Secured or unsecured
Convertible or non-convertible
Cumulative or non-cumulative
Participating or non-participating
Preference shares may be ______.
Secured or unsecured
Convertible or non-convertible
Cumulative or non-cumulative
Participating or non-participating
Which of the following are the functions of capital market?
It enables borrowers to obtain needed funds at a reasonable cost.
It helps investors in earning minimum available return on their funds.
It brings about an imbalance between demand and supply of capital.
It provides a mechanism for transfer of claims on capital funds.
VERY SHORT ANSWER QUESTIONS
Name the source of finance wherein receivables on account of the sale of goods or services are sold at a discount.
What is debenture?
Give the full form of ADRs.
Give the full form of GDRs.
What are retained earnings?
What are retained profits called "self financing"?
What is the full form of IDR?
What is the full form of ICD?
SHORT ANSWER QUESTIONS
Define business finance.
Differentiate between owned funds and borrowed funds.
Distinguish between equity shares and preference shares.
Distinguish between shares and debentures.
Describe the different types of preference shares.
Distinguish between cumulative and non-cumulative preference shares.
Differentiate between convertible and non-convertible debentures.
What are public deposits?
What is an American Depositary Receipt (ADR)?
What is GDR?
What is IDR?
State any three sources of borrowed funds.
Name three sources of owned funds for business.
State any three advantages of debenture issue as a source of finance.
Name any two main financial institutions in India.
Explain Debentures.
Write a short note discounting of bills of exchange.
What is an overdraft?
LONG ANSWER QUESTIONS
What is a Capital Market?
Explain any two functions of Capital Market.
What are the sources of long-term finance for a business enterprise? Explain.
Describe the characteristics of different kinds of shares which a public company can issue.
Discuss the importance of equity shares as sources of long-term finance.
Discuss the importance of preference shares as sources of long-term finance.
Distinguish between shares and debentures.
What are the various sources of raising borrowed funds for a business?
Which source is the best source of raising borrowed funds for a business? and why?
Discuss the importance of debentures as sources of medium and short-term finance.
Discuss the importance of public deposits as sources of medium and short-term finance.
What are retained profits?
Discuss the advantages of retained profits as a source of finance.
Discuss the disadvantages of retained profits as a source of finance.
A company has to meet its short-term financial needs. It is considering whether it should raise loans from commercial banks or invite public deposits. Discuss the merits and demerits of each form.
Explain the pros and cons of public deposits as a source of business finance.
Explain the role of IDR as sources of finance for Indian industries.
State any three features of ADR.
Explain the role of GDRs as sources of finance for Indian industries.
The directors of a company have decided to modernise the plants and machinery at an estimated cost of Rs. one crore, but could not decide whether to issue preference shares or debentures for this purpose. As finance manager of the company, advise the directors whether to issue preference shares or debentures in the interest of the company.
The directors of a company have decided to modernise the plant and machinery at an estimated cost of rupees one crore. State the merits and demerits of issuing equity shares for the purpose.
What are the various sources of raising borrowed funds for a business?
Describe advantages of loans from financial institutions.
Describe the limitations of loans from financial institutions.
Distinguish between equity shares and preference shares.
Briefly discuss five characteristics of capital market.
OBJECTIVE TYPE QUESTIONS - Are the following statements True or False?
Equity shareholders are the real owners of business.
True
False
Preference shares carry preferential rights for payment of dividend and repayment of capital.
True
False
Dividends on cumulative preference shares go on accumulating unless paid.
True
False
Debentures constitute a part of owned funds.
True
False
Public deposits are a source of long-term finance.
True
False
Long-term finance is required for meeting day-to-day requirements.
True
False
Commercial banks generally provide long-term loans.
True
False
Term loans are a source of medium-term finance.
True
False
Goyal Brothers Prakashan solutions for Commercial Studies [English] Class 10 ICSE 10 Sources of Finance QUESTION BANK [Page 172]
What is a Capital Market?
Explain any two functions of Capital Market.
Distinguish between Primary Market and Secondary Market.
What is meant by Equity Shares?
Explain the advantages of equity shares as a source of long-term finance.
Explain the disadvantages of equity shares as a source of long-term finance.
What are Preference Shares?
Describe the different types of preference shares.
Discuss the importance of preference shares as sources of long-term finance.
Explain the disadvantages of preference shares.
Distinguish between equity shares and preference shares.
What are retained earnings?
Discuss the advantages of retained profits as a source of finance.
Discuss the disadvantages of retained profits as a source of finance.
What is GDR?
Explain the advantages of Global Depository Receipts (GDRs).
Explain the disadvantages of Global Depository Receipts (GDRs).
What is an American Depositary Receipt (ADR)?
Describe the advantages of American Depository Receipts (ADRs).
What is IDR?
State the advantages of Indian Depository Receipts (IDRs).
Explain Debentures.
Describe the various types of debentures.
Distinguish between shares and debentures.
State any three advantages of debenture issue as a source of finance.
Discuss the disadvantages of raising finance through debentures.
What are public deposits?
Discuss the importance of public deposits as sources of medium and short-term finance.
Describe the disadvantages of public deposits.
State the various forms of borrowing from commercial banks.
What are the advantages of borrowing from commercial banks?
What are the disadvantages of borrowing from commercial banks?
Describe advantages of loans from financial institutions.
Describe the limitations of loans from financial institutions.
What is meant by trade credit?
Describe the advantages of Trade Credit as a source of short-term finance.
Describe the disadvantages of Trade Credit as a source of short-term finance.
Solutions for 10: Sources of Finance
Goyal Brothers Prakashan solutions for Commercial Studies [English] Class 10 ICSE chapter 10 - Sources of Finance
Shaalaa.com has the CISCE Mathematics Commercial Studies [English] Class 10 ICSE CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. Goyal Brothers Prakashan solutions for Mathematics Commercial Studies [English] Class 10 ICSE CISCE 10 (Sources of Finance) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
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Concepts covered in Commercial Studies [English] Class 10 ICSE chapter 10 Sources of Finance are Sources of Finance, Capital Market, Functions of Capital Market, Sources of Raising Capital, Equity Shares, Preference Shares, Retained Earnings, Meaning of Global Depository Receipt (GDR), American Depository Receipts (ADR), Indian Depository Receipts (Idrs), Debentures/Bonds, Public Deposits, Loans from Commercial Banks, Loan from Financial Institution, Trade Credit, Intercorporate Deposit.
Using Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE solutions Sources of Finance exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in Goyal Brothers Prakashan Solutions are essential questions that can be asked in the final exam. Maximum CISCE Commercial Studies [English] Class 10 ICSE students prefer Goyal Brothers Prakashan Textbook Solutions to score more in exams.
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