EXERCISES
Short Answer Questions
Question 1:
What is business finance? Why do businesses need funds? Explain.
Question 2:
List sources of raising long-term and short-term finance.
Question 3:
What is the difference between internal and external sources of raising funds? Explain.
Question 4:
What preferential rights are enjoyed by preference shareholders. Explain.
Question 5:
Name any three special financial institutions and state their objectives.
Question 6:
What is the difference between GDR and ADR? Explain.
Class 11 B. Studies Ch-8 Sources of Business Finance
Long Answer Questions
Question 1:
Explain trade credit and bank credit as sources of short-term finance for business enterprises.
Question 2:
Discuss the sources from which a large industrial enterprise can raise capital for financing modernisation and expansion.
Question 3:
What advantages does issue of debentures provide over the issue of equity shares?
Question 4:
State the merits and demerits of public deposits and retained earnings as methods of business finance.
Class 11 B. Studies Ch-8 Sources of Business Finance
