Definitions [6]
Answer each of these questions in about fifteen words:
What do you understand by internal sources of finance?
Internal sources of finance is referred to as owner’s own money. It is also known as owner’s equity. Particularly in the case of small entrepreneurs the owner’s money is very small.
Answer each of these questions in about fifteen words:
Give the significance of finance in an enterprise.
The significance of finance in enterprise is elucidated like a lubricant to the process of production.
Answer each of these questions in about fifteen words:
What do you understand by finance?
‘Finance’ refers to funds or monetary resources needed by individuals, business houses and the government.
Answer each of these questions in about fifteen words:
Name the most important prerequisite to start an enterprise
Finance is the most important prerequisite to start an enterprise.
Answer each of these questions in about fifteen words:
How will you differentiate between financial market with other market? Give one difference.
Financial market is a market in which people and entities can trade financial securities (stocks and bonds), commodities (including precious metals or agricultural goods), and others like crude oil etc. at prices that reflect supply and demand. Market refers to the aggregate of possible buyers and sellers of a certain good or service and the transactions between them.
Answer each of these questions in about fifteen words:
‘Production’, ‘Marketing’, and Financing’ – deemed as the most important factors for any business’s survival rates. Among these name the most critical element and why?
Production, marketing, and financing, deemed to be the most important factors for any business survival. ‘ Financing’ is considered to be the first because no entrepreneur can start and run the business without money. Among this the most critical element for success in business is ‘Finance’. Before doing anything, an entrepreneur should clearly answer the following three questions:
- How much money is required?
- Where will money come from?
- When does the money need to be available?
Key Points
- Capital market is a market for long‑term funds (more than one year), both equity and debt.
- It supplies finance for agriculture, trade and industry, helping investment and economic growth.
- Main suppliers of long‑term funds are individual savers, companies, banks, insurance firms and special financial institutions.
