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What is a commercial paper? - Business Studies

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प्रश्न

What is commercial paper?

टीपा लिहा

उत्तर

Commercial paper is a credit instrument used by creditworthy firms to obtain short-term finance for their business. These are unsecured promissory notes, the maturity of which ranges from 90 to 364 days. They are generally issued to business firms, banks, insurance companies and pension funds, and their issue is regulated by the Reserve Bank of India.

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Meaning and Nature of Business Finance
  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 8: Sources of Business Finance - Long Answers [पृष्ठ २०५]

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एनसीईआरटी Business Studies [English] Class 11
पाठ 8 Sources of Business Finance
Long Answers | Q 6.1 | पृष्ठ २०५

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'.

Group A
Group B
(a) Retained profits. (1) Share warrant holder
(b) Small depositors
(2) Borrowed capital
(c) Dividend coupon
(3) Deposits less than Rs. 25000
(d) Returns on shares
(4) Interest
(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:

Under the lease agreement, the lessee gets the right to


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 _________


Write short notes on debentures.


Define Business finance.


What is pledge?


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.


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