Balbharati solutions for Secretarial Practice [English] 12 Standard HSC Maharashtra State Board chapter 2 - Sources of Corporate Finance [Latest edition]

Select the correct answer from the options given below and rewrite the statement.

______ is a smallest unit in the total share capital of the company.

The benefit of Depository Receipt is ability to raise capital in ___________ market.

Select the correct answer from the options given below and rewrite the statement.

______ are residual claimants against the income or assets of the company.

Select the correct answer from the options given below and rewrite the statement.

______ participate in the management of their company

______ shares are issued free of cost to existing equity shareholders.

Select the correct answer from the options given below and rewrite the statement.

The holder of preference share has right to receive ______ rate of divided.

Select the correct answer from the options given below and rewrite the statement.

The accumulated dividend is paid to ______ preference shares.

Select the correct answer from the options given below and rewrite the statement.

The holder of ______ preference shares has the right to convert their shares into equity shares.

Select the correct answer from the options given below and rewrite the statement.

Debenture holders are ______ of the company.

Select the correct answer from the options given below and rewrite the statement.

______ is paid on borrowed capital.

Select the correct answer from the options given below and rewrite the statement.

Debenture holders get fixed rate of ______ as return on their investment.

Select the correct answer from the options given below and rewrite the statement.

Convertible debentures are converted into ______ after a specific period.

Select the correct answer from the options given below and rewrite the statement.

Retained earnings are ______ source of financing.

The holder of bond is ______ of the company.

Company can accept deposits from public, minimum for ______ months.

Select the correct answer from the options given below and rewrite the statement.

Company can accept deposits from public, maximum for ______ months.

Select the correct answer from the options given below and rewrite the statement.

A depository receipt traded in ______ is called American Depository receipt.

Match the pairs.

Write a word or a term or a phrase which can substitute the following statement.

The ‘real masters’ of the company.

Write a word or a term or a phrase which can substitute the following statement.

A document of title of ownership of shares.

Write a word or a term or a phrase which can substitute the following statement.

The holders of these shares are entitled to participate in the surplus profit.

Write a word or a term or a phrase which can substitute the following statement.

A party through whom the company deals with debenture holders.

Write a word or a term or a phrase which can substitute the following statement.

Name the shareholders who participate in the management.

Write a word or a term or a phrase which can substitute the following statement.

The value of share which is written on the share certificate.

Write a word or a term or a phrase which can substitute the following statement.

The value of share which is determined by demand and supply forces in the share market.

Write a word or a term or a phrase that can substitute the following statement.

The policy of using undistributed profit for the business.

Write a word or a term or a phrase which can substitute the following statement.

It is an acknowledgement of loan issued by company to depositor.

Write a word or a term or a phrase which can substitute the following statement.

A Dollar denominated instrument traded in USA.

Write a word or a term or a phrase which can substitute the following statement.

The Depository Receipt traded in country other than the USA.

Write a word or a term or a phrase which can substitute the following statement.

Money raised by company from public for minimum 6 months to maximum 36 months.

Write a word or a term or a phrase which can substitute the following statement.

Credit extended by the suppliers with an intention to increase their sales.

Write a word or a term or a phrase which can substitute the following statement.

The credit facility provided to a company having current account with bank.

State whether the following statement is true or false.

Equity share capital is known as venture capital.

State whether the following statement is true or false.

Equity shareholders enjoy fixed rate of dividend.

State whether the following statement is true or false.

Equity shareholders are described as ‘shock absorber’ when company has financial crisis.

State whether the following statement is true or false.

Debenture holders have right to vote at general meeting of the company.

State whether the following statement is true or false.

Bond holders are owners of the company.

State whether the following statement is true or false.

Depository bank stores the shares on behalf of GDR holder.

State whether the following statement is true or false.

Financial institutions underwrite the issue of securities.

State whether the following statement is true or false.

Cash credit is given against hypothecation of goods or any security

State whether the following statement is true or false.

Trade credit is major source of long term finance.

Find the odd one.

Find the odd one.

Find the odd one.

Find the odd one.

Complete the sentence.

The finance needed by business organisation is termed as ______

Complete the sentence.

The convertible preference share holders have a right to convert their shares into ______

Complete the sentence.

Equity shareholders elect their representatives called ______

Complete the sentence.

Bonus shares are issued as gift to ______

Complete the sentence.

The bond holders are ______ of the company.

Complete the sentence.

Depository receipt traded in a country other than USA is called ______

Complete the sentence.

First Industrial policy was declared in the year ______

Complete the sentence.

When goods are delivered by supplier to customer on basis of deferred payment it is called as ______

Select the correct option from the bracket.

(Fluctuating rate of dividend, Preference shares, Interest at fixed rate, Retained earnings, Short term loan)

Answer in one sentence.

What is a share?

Answer in one sentence.

What are Equity Shares?

Answer in one sentence.

What are preference shares?

Answer in one sentence.

What are retained earnings?

Answer in one sentence.

What is a debenture?

Answer in one sentence.

What is a bond?

Answer in one sentence.

In which country can ADR be issued?

Answer in one sentence.

In which country can GDR be issued?

Answer in one sentence.

What are convertible debentures?

Answer in one sentence.

What are cumulative preference shares?

Correct the underlined word and rewrite the following sentence.

Owned capital is temporary capital.

Correct the underlined word and rewrite the following sentence.

Equity shares get dividend at fixed rate.

Correct the underlined word and rewrite the following sentence.

Preference shares get dividend at fluctuating rate.

Correct the underlined word and rewrite the following sentence.

Retained earnings is an external source of finance.

Correct the underlined word and rewrite the following sentence.

Debenture holder is owner of the company

Correct the underlined word and rewrite the following sentence.

Bond is a source of short term finance.

Correct the underlined words and rewrite the following sentence:

Depository Receipt traded in USA is called as Global Depository Receipt.

Explain the following term/concept.

Borrowed Capital 

Explain the following term/concept.

Owned capital

Explain the following term/concept.

Ploughing back of profit

Explain the following term/concept.

Overdraft

Explain the following term/concept.

Trade credit

Study the following case/situation and express your opinion.

The Balance-sheet of a Donald Company for the year 2018-19 reveals equity share capital of Rs. 25,00,000 and retained earnings of Rs. 50,00,000.

1. Is the company financially sound?
2. Can the retained earnings be converted into capital?
3. What type of source retained earning is?

Study the following case/situation and express your opinion.

Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely

1. According to you which type of share Mr. Satish will choose to invest?
2. What does he receive as return on investment?
3. State any one right which he will enjoy as a shareholder.

Study the following case/situation and express your opinion.

Mr. Rohit, an individual investor, invests his own funds in the securities. He depends on investment income and does not want to take any risk. He is interested in definite rate of income and safety of principal.

1. Name the type of security that Mr. Rohit will opt for.
2. What does he receive as return on his investment?
3. The return on investment which he receives is fixed or fluctuating?

Distinguish between the following.

Equity shares and Preference shares.

Shares and Debentures

Distinguish between the following.

Owned capital and borrowed capital.

Answer in brief.

What is public deposit?

What is Global Depository Receipt?

Answer in brief.

What is trade credit?

Answer in brief.

What are the schemes for disbursement of credit by bank?

Answer in brief.

State the features of Bonds.

Justify the following statement.

Equity shareholders are real owners and controllers of company.

Justify the following statement.

Preference shares do not carry any voting rights.

Justify the following statement.

The debentures are secured by a charge on assets of the company

Justify the following statement.

Retained earning is simple and cheapest method of raising finance.

Justify the following statement.

Public deposit is good source of short term financing.

Justify the following statement.

Bond holder is creditor of the company.

Justify the following statement.

Trade credit is not cash loan.

Justify the following statement.

Different investors have different preferences.

Justify the following statement.

Equity share capital is risk capital.

Give one word or phrase for the following sentence:

What is Share?

State any 4 features of shares.

State the features of equity shares.

Answer the following question.

Define preference shares. What are the different types of preference shares?

Answer the following question.

What are preference shares? State it’s features

What is Debenture? Discuss the different types of debentures.

Answer the following question.

Define Debenture and explain the features of debentures.