मराठी

Answer Each of These Questions in About One Hundred and Fifty Words: Explain How Capital Markets Are the Most Important Source of Raising Finance for an Entrepreneur. - Entrepreneurship

Advertisements
Advertisements

प्रश्न

Answer each of these questions in about one hundred and fifty words:

Explain how capital markets are the most important source of raising finance for an entrepreneur.

टीपा लिहा
Advertisements

उत्तर

 Capital markets are the most important source of raising finance for the entrepreneurs. This market:

  1.  Mobilises the financial resources on a nation-wide scale.
  2. Secures the much required foreign capital and know-how to promote economic growth at a faster rate.
  3.  Ensures the most effective allocation of the mobilized financial resources by directing the same either to such projects which are capable of the highest yield or to the under developed priority areas where there is an urgent need to promote balanced and diversified industrialization. The needs of entrepreneurs who actually use the savings for productive purposes are varied. The capital market satisfies the tastes of savers and the needs of investors through its financial instruments and institutions.
shaalaa.com
  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 6: Resource Mobilization - Section B: Financial Markets [पृष्ठ २४६]

APPEARS IN

सीबीएसई Entrepreneurship [English] Class 12
पाठ 6 Resource Mobilization
Section B: Financial Markets | Q 3.2 | पृष्ठ २४६

संबंधित प्रश्‍न

Answer each of these questions in about fifteen words:

Which sources provide the supply for long-term funds?


Answer each of these questions in about fifteen words:
Define capital market.


Answer each of these questions in about fifteen words:

What is a secondary market?


Answer each of these questions in about fifteen words:

In what forms company can raise capital through primary market?


Answer each of these questions in about one hundred and fifty words:

State the nature of money market. Who are the major participants in the money market?


Answer each of these questions in about one hundred and fifty words:

What do you understand by capital market? How can the capital market in India be broadly classified into different categories?


Answer each of these questions in about one hundred and fifty words:

What is meant by primary market? Briefly explain the concept of ‘Right Issue for existing companies’.


Answer each of these questions in about two hundred and fifty words:

“An entrepreneur can raise the required capital in the primary market.” Explain the various methods of raising the funds in the primary market by an entrepreneur.


Answer each of these questions in about fifteen words:

What is a secondary capital market?


Assertion (A): Stock exchange is an important constituent of the money market.

Reasoning (R): Stock exchange is an organization in which stocks, bonds, commodities etc. are traded.


Identify & explain the concept from the given illustration.

Kerala-based company K Jewellers intends to raise ₹1000 crore by fresh issuance of shares.


Capital market do not provide _________


What is Capital Market?


What are the methods of floatation in Primary Market?


Which market directly contributes to capital formation?


Read the following text and answer the following question on the basis of the same:

ISQM SOLAR Limited is searching for options to raise Rs. 20,000 crores from the primary market for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, DHAN LAXMI Pvr LTD. to suggest options for the same. DHAN LAXMI PVI LTD. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of Rs. 1,500 crores, the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. Rs. 4,500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of Rs. 6,000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise Rs. 8,000 crores through the online system of the stock exchange by entering into an agreement with the exchange.

Identify the method of floatation of new issues in the primary market, not taken up by ISQM SOLAR LTD.:


Read the following text and answer the following question on the basis of the same:

ISQM SOLAR Limited is searching for options to raise Rs. 20,000 crores from the primary market for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, DHAN LAXMI Pvr LTD. to suggest options for the same. DHAN LAXMI PVI LTD. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of Rs. 1,500 crores, the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. Rs. 4,500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of Rs. 6,000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise Rs. 8,000 crores through the online system of the stock exchange by entering into an agreement with the exchange.

Identify the reason which has made the firm raise funds from the institutional investors :


Identify and explain the following concept:

Raju’s father invests his money in a market for long term funds both equity and debt raised within and outside the country.


Which of the following statements is incorrect?


Complete the correlation:

Money market : Short term funds :: ______ : Long term funds.


State the following statements are True or False.

Capital market is the market for long-term funds.


Complete the correlation:

Money market : Short term funds :: ______ : Long term funds.


Complete the correlation:

Money market : Short term funds :: _____ : Long term funds. 


Complete the correlation:

Money market : Short term funds :: ______ : Long term funds


Complete the correlation.

Money market : Short term funds :: ______: Long term funds


Complete the correlation:

Money market : Short term funds :: ______ Long term funds.


Complete the correlation.

Money market : Short term funds :: ______ : Long term funds


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×