Advertisements
Advertisements
प्रश्न
Explain the pros and cons of public deposits as a source of business finance.
Advertisements
उत्तर
The pros of public deposits are as follows:
- Obtaining deposits is simple and free of the restrictive requirements typically found in lending agreements.
- The cost of public deposits is generally lower than the cost of borrowing from banks and financial institutions.
- Public deposits normally do not generate a levy on the company's assets. The assets can serve as collateral for obtaining loans from other sources.
- Depositors do not have voting rights; hence, the company's control is not diluted.
The cons of public deposits are as follows:
- New enterprises usually struggle to raise cash through public deposits.
- The public may not respond to a company's financial requirements, making it an unreliable source of funding.
- Collecting public deposits can be problematic, especially for big amounts.
APPEARS IN
संबंधित प्रश्न
State, with reasons, whether the following statements are True
or False (Any THREE) :
A company can accept deposits repayable on demand.
Select the proper option from the option given below and rewrite the sentences:
Company can accept deposits from public, maximum for _____ months.
Write notes on (Any Three)
Repayment of Deposits.
State, with reason, whether the following statement is True or False.
A public company can receive deposits from the public to any extent.
Draft a letter to a depositor informing him about payment of interest.
What are the provision and rules of companies Act1956 with respect to Acceptance of Public Deposits?
OR
Multiple Choice Question:
Public deposits are deposits that are raised directly from
State the merits and demerits of public deposits and retained earnings as methods of business finance.
Public deposits are deposits made by the public in nationalised banks.
A public deposit is a deposit made by public in the nationalised banks.
