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Goyal Brothers Prakashan solutions for बिजनस स्टडीज [अंग्रेजी] कक्षा १२ आईसीएसई chapter 18 - Sources of Business Finance [Latest edition]

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Goyal Brothers Prakashan solutions for बिजनस स्टडीज [अंग्रेजी] कक्षा १२ आईसीएसई chapter 18 - Sources of Business Finance - Shaalaa.com
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Solutions for Chapter 18: Sources of Business Finance

Below listed, you can find solutions for Chapter 18 of CISCE Goyal Brothers Prakashan for बिजनस स्टडीज [अंग्रेजी] कक्षा १२ आईसीएसई.


EXERCISESQUESTION BANK
EXERCISES [Pages 267 - 270]

Goyal Brothers Prakashan solutions for बिजनस स्टडीज [अंग्रेजी] कक्षा १२ आईसीएसई 18 Sources of Business Finance EXERCISES [Pages 267 - 270]

Objective Type Questions MCQ's {Select the best Alternative)

EXERCISES | Q I. A. 1. | Page 267

Bills of Exchange is an Instrument of ______.

  • ICD

  • Trade Credit

  • Loan

  • None of these

EXERCISES | Q I. A. 2. | Page 267

Debenture-holders are called as ______.

  • Employees of the Company

  • Owner of the Company

  • Creditors of the Company

  • None of these

EXERCISES | Q I. A. 3. | Page 267

Who among the following are called owner of the company?

  • Debenture-holder

  • Employees

  • Directors

  • Equity shareholders

EXERCISES | Q I. A. 4. | Page 267

Preference shareholders get preference over equity share for ______.

  • Payment of dividend

  • Voting

  • Participation in management

  • None of these

EXERCISES | Q I. A. 5. | Page 267

Which Instrument saves tax?

  • Equity Shares

  • Debentures

  • Retained Earnings

  • Preference Shares

EXERCISES | Q I. A. 6. | Page 268

Retained Earnings are also known as ______.

  • Capital

  • Ploughing back of profit

  • Surplus profit

  • Gross profit

EXERCISES | Q I. A. 7. | Page 268

Who controls the company?

  • Debentures-holder

  • Employees

  • Shareholders

  • None of these

EXERCISES | Q I. A. 8. | Page 268

Public deposits cannot exceed ______.

  • 10% of share capital and free reserves

  • 25% of share capital and free reserves

  • 50% of share capital and free reserves

  • No limit

EXERCISES | Q I. A. 9. | Page 268

The unsecured source of borrowed fund which can be raised for period of six months to three years is ______.

  • Public deposits

  • Preference shares

  • Debenture

  • None of these

EXERCISES | Q I. A. 10. | Page 268

Which capital is used for buying current assets?

  • Fixed Capital

  • Working Capital

  • Both Fixed Capital and Working Capital

  • None of these

EXERCISES | Q I. A. 11. | Page 268

The deposit made by one company with another company is called ______.

  • Public deposits

  • Inter-corporate deposit

  • Loan from Commercial Bank

  • Loan from financial Institutions

EXERCISES | Q I. A. 12. | Page 268

International sources of finance are ______.

  • ADR and GDR

  • FDI

  • ADR, GDR and FDI

  • All of these

Fill in the blanks with suitable words given in brackets.

EXERCISES | Q I. B. 1. | Page 268

Equity shareholders are called ______. 

  • Owners of the company

  • Partners of the company

  • Executives of the company

  • Guardian of the company

EXERCISES | Q I. B. 2. | Page 268

Trade credit is the example of ______.

  • Long-term finance

  • Medium-term finance

  • Short-term finance

EXERCISES | Q I. B. 3. | Page 268

Internal sources of capital are those that are generated ______.

  • through outsiders

  • through commercial banks

  • within the business

EXERCISES | Q I. B. 4. | Page 268

Risk capital foundation established by ______.

  • IDBI

  • ICICI

  • IFCI

EXERCISES | Q I. B. 5. | Page 268

GDR is ______.

  • foreign direct investment

  • free direct investment

  • forestry direct investment

Very Short Answer Type Questions

EXERCISES | Q I. C. 1. | Page 268

How do borrowed funds put a lot of burden on business?

EXERCISES | Q I. C. 2. | Page 268

Which cost should be taken into consideration while deciding about the source of funds? 

EXERCISES | Q I. C. 3. | Page 268

What are the external source of funds?

EXERCISES | Q I. C. 4. | Page 268

What are retained profits called “self-financing”? 

EXERCISES | Q I. C. 5. | Page 268

Why is share capital called owner’s funds?

EXERCISES | Q I. C. 6. | Page 269

Who regulates the public deposits?

EXERCISES | Q I. C. 7. | Page 269

Which source of business finance does ploughing back of profit indicate?

EXERCISES | Q I. C. 8. | Page 269

What is borrowed capital?

EXERCISES | Q I. C. 9. | Page 269

Explain the following term/concept.

Trade credit

EXERCISES | Q I. C. 10. | Page 269

Why are retained earnings considered as an uncertain source of funds?

EXERCISES | Q I. C. 11. | Page 269

What are retained earnings?

EXERCISES | Q I. C. 12. | Page 269

Define share.

EXERCISES | Q I. C. 13. | Page 269

Why are debentures known as borrowed funds?

EXERCISES | Q I. C. 14. | Page 269

Which source of fund provides tax benefits?

EXERCISES | Q I. C. 15. | Page 269

What is the position of equity shareholders with respect to the company?

EXERCISES | Q I. C. 16. | Page 269

Why it is said that equity shareholders are the residual owners?

EXERCISES | Q I. C. 17. | Page 269

Which source of business finance does self-financing indicate?

EXERCISES | Q I. C. 18. (a) | Page 269

Give the full form of GDRs.

EXERCISES | Q I. C. 18. (b) | Page 269

Expand the following:

NBFC

Short Answer Type Questions

EXERCISES | Q II. 1. | Page 269

Define equity shares.

EXERCISES | Q II. 2. | Page 269

Define ‘preference shares’.

EXERCISES | Q II. 3. | Page 269

Define debenture.

EXERCISES | Q II. 4. | Page 269

Define Retained profits.

EXERCISES | Q II. 5. | Page 269

What are public deposits?

EXERCISES | Q II. 6. | Page 269

Define trade credit.

EXERCISES | Q II. 7. | Page 269

Write a short note discounting of bills of exchange.

EXERCISES | Q II. 8. | Page 269

What is GDR?

EXERCISES | Q II. 9. | Page 269

Who are called 'Angel Investors'?

EXERCISES | Q II. 10. | Page 269

Briefly explain the following source of finance:

Venture Capitalist

EXERCISES | Q II. 11. | Page 269

Briefly explain crowd funding.

EXERCISES | Q II. 12. | Page 269

What is Peer-to-Peer Lending?

EXERCISES | Q II. 13. | Page 269

What are retained profits?

EXERCISES | Q II. 14. | Page 269

Why preference shares called hybrid securities?

EXERCISES | Q II. 15. | Page 269

What is meant by the following term with reference to the sources of finance?

Peer to peer Funding

EXERCISES | Q II. 16. | Page 270

Public deposits are deposits made by the public in nationalised banks. 

  • True

  • False

EXERCISES | Q II. 17. | Page 270

With reference to Financing, briefly explore factoring.

EXERCISES | Q III. 1. | Page 270

Distinguish between equity shares and preference shares.

EXERCISES | Q III. 2. | Page 270

Distinguish between shares and debentures.

EXERCISES | Q III. 3. (i) | Page 270

Explain Retained Profits as sources of long term finance.

EXERCISES | Q III. 3. (ii) | Page 270

Explain term loans as sources of long term finance.

EXERCISES | Q III. 4. | Page 270

“Public deposits, trade credit and bills discounting are sources of short term finance”.

EXERCISES | Q III. 5. | Page 270

“Angel Investors and Venture Capitalists are a boon for new enterprises.” Discuss.

EXERCISES | Q III. 6. | Page 270

“Crowd Funding and Peer-to-Peer Funding are yet to emerge as major sources of finance”. Explain.

EXERCISES | Q III. 7. (i) | Page 270

With reference to business finance, explain the following:

Preference shares

EXERCISES | Q III. 7. (ii) | Page 270

With reference to business finance, explain the following:

Debentures

EXERCISES | Q III. 7. (iii) | Page 270

With reference to business finance, explain the following:

Retained earnings

EXERCISES | Q III. 7. (iv) | Page 270

With reference to business finance, explain the following:

Public Deposits

EXERCISES | Q III. 8. | Page 270

State the function of factoring.

EXERCISES | Q III. 9. (i) | Page 270

Explain angel investors as a source of finance for a business venture.

EXERCISES | Q III. 9. (ii) | Page 270

Explain crowdfunding as a source of finance for a business venture.

EXERCISES | Q III. 10. | Page 270

Akshay is planning to start manufacturing of educational toys for children. He has some savings and has also borrowed some money from his friends and relatives to invest in this business. However, he needs more money to start the business. 

Name and explain any two sources of business finance available to him.

EXERCISES | Q III. 11. (a) | Page 270

Distinguish between angel investors and venture capitalists.

EXERCISES | Q III. 11. (b) | Page 270

Briefly explain the process of financing a business through Retained Profits.

EXERCISES | Q III. 12. (i) | Page 270

Read the passage given below and answer the questions that follow.

ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi-NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans.
  1. Briefly explain the Angel Investors’ source of finance.
  2. State whether the Angel Investors’ source can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
EXERCISES | Q III. 12. (ii) | Page 270

Read the passage given below and answer the questions that follow.

ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi-NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans.
  1. Briefly explain the factoring source of finance.
  2. State whether the factoring source can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
EXERCISES | Q III. 12. (iii) | Page 270

Read the passage given below and answer the questions that follow.

ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi-NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans.
  1. Briefly explain the Global Depository Receipts source of finance.
  2. State whether the Global Depository Receipts source can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
EXERCISES | Q III. 12. (iv) | Page 270

Read the passage given below and answer the questions that follow.

ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi-NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans.
  1. Briefly explain the source of finance for loans from financial institutions.
  2. State whether the Loans from Financial Institutions source can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
EXERCISES | Q III. 13. (i) | Page 270

Briefly explain crowd funding.

EXERCISES | Q III. 13. (ii) | Page 270

What are public deposits?

EXERCISES | Q III. 13. (iii) | Page 270

Write a short note discounting of bills of exchange.

EXERCISES | Q III. 13. (iv) | Page 270

What are retained profits?

QUESTION BANK [Pages 270 - 272]

Goyal Brothers Prakashan solutions for बिजनस स्टडीज [अंग्रेजी] कक्षा १२ आईसीएसई 18 Sources of Business Finance QUESTION BANK [Pages 270 - 272]

QUESTION BANK | Q 1. | Page 270

Write a note on Angel Investors.

QUESTION BANK | Q 2. | Page 270

State any two features of venture capital.

QUESTION BANK | Q 3. | Page 270

Write a brief note on Peer-to-Peer funding.

QUESTION BANK | Q 4. | Page 271

What is the Importance of Retained Earnings?

QUESTION BANK | Q 5. | Page 271

"Crowd funding and peer to peer funding are similar yet different" Comment

QUESTION BANK | Q 6. | Page 271

Explain the following term/concept.

Trade credit

QUESTION BANK | Q 7. | Page 271

What are the eligibility for venture capital financing?

QUESTION BANK | Q 8. | Page 271

Distinguish between equity shares and preference shares.

QUESTION BANK | Q 9. | Page 271

Distinguish between shares and debentures.

QUESTION BANK | Q 10. (i) 1. | Page 272

Explain the advantages of equity shares as a source of long-term finance.

QUESTION BANK | Q 10. (i) 2. | Page 272

Explain the disadvantages of equity shares as a source of long-term finance.

QUESTION BANK | Q 10. (ii) 1. | Page 272

Discuss the importance of preference shares as sources of long-term finance.

QUESTION BANK | Q 10. (ii) 2. | Page 272

Explain the disadvantages of preference shares.

QUESTION BANK | Q 10. (iii) 1. | Page 272

State any three advantages of debenture issue as a source of finance.

QUESTION BANK | Q 10. (iii) 2. | Page 272

State any four disadvantages of debentures. 

QUESTION BANK | Q 10. (iv) 1. | Page 272

Discuss the advantages of retained profits as a source of finance.

QUESTION BANK | Q 10. (iv) 2. | Page 272

Discuss the disadvantages of retained profits as a source of finance.

QUESTION BANK | Q 10. (v) 1. | Page 272

Explain any two advantages of Public deposits.

QUESTION BANK | Q 10. (v) 2. | Page 272

Describe the disadvantages of public deposits.

Solutions for 18: Sources of Business Finance

EXERCISESQUESTION BANK
Goyal Brothers Prakashan solutions for बिजनस स्टडीज [अंग्रेजी] कक्षा १२ आईसीएसई chapter 18 - Sources of Business Finance - Shaalaa.com

Goyal Brothers Prakashan solutions for बिजनस स्टडीज [अंग्रेजी] कक्षा १२ आईसीएसई chapter 18 - Sources of Business Finance

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Concepts covered in बिजनस स्टडीज [अंग्रेजी] कक्षा १२ आईसीएसई chapter 18 Sources of Business Finance are Overview of Sources of Business Finance, Kinds of Shares> Equity Shares, Kinds of Shares> Preference Shares, Retained Profits, Loans, Public Deposits, Trade Credit, Concept of Debentures, Global Depository Receipts (GDRs), Angel Investors, Venture Capitalists, Crowd Funding, Peer-To-Peer Funding, Factoring, Accounting Treatment> Discounting the Bill of Exchange.

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