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प्रश्न
List sources of raising long-term and short-term finance.
उत्तर
The following are some of the sources of long-term funds.
(a) Equity shares: These represent the ownership capital of a company. The holders of such shares enjoy a say in the management and gain higher returns when the company earns higher profits.
(b) Retained earnings: These are the undistributed profits of a business that are retained in the business for future use.
(c) Debentures: Debentures are financial instruments used by companies to raise long-term debt capital. They carry a fixed rate of return and specify a time for repayment.
The following are some of the sources of short-term funds.
(a) Trade credit: It is the amount of credit that is extended by the supplier to the purchaser. It facilitates the purchase of goods on credit.
(b) Banks: Business enterprises can also obtain short-term funds from banks.
(c) Commercial paper: These are credit instruments used by creditworthy firms to obtain short-term finance for their business.
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संबंधित प्रश्न
The _______ means mix‐up of various sources of funds in desired proportion.
Business finance deals with __________ activities of business.
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
|
|
| (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 | ||
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ADRs are issued in
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Under the lease agreement, the lessee gets the right to
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?
Why do businesses need funds? Explain.
Discuss the sources from which a large industrial enterprise can raise capital for financing modernisation and expansion.
What are the advantages and limitations of commercial paper?
Choose the Correct Answer.
What is defined as the provision of money at the time when it is required?
Choose the Correct Answer.
Debenture holders are entitled to a fixed rate of _________
Choose the Correct Answer.
Equity shareholders are the __________
Define Business finance.
What is pledge?
Business firm gives green signal to the project only when it is profitable.
