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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

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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
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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.
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पाठ 6: Resource Mobilization - Section B: Financial Markets [पृष्ठ २४६]

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

संबंधित प्रश्‍न

Answer the following question:
An investor wanted to incest RS. 20,000 in Treasury Bills for a period of 91 days. When he approached the Reserve Bank of India for this purpose he came to know that it was not possible.
Identify the reason why the investor could not invest in the Treasury Bill.


Differentiate between ‘primary market’ and ‘secondary market’ on any five basis.


Explain the recent Capital Market reforms in India.


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

 identify the method of raising additional finance from existing shareholders by offering securities to them on pro-rata basis.


Answer each of these questions in about fifteen words:

What is the need of 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:

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’.


Assertion and Reasoning:

  • Assertion (A): Regional stock exchanges have witnessed a sharp decline in the volume of trade.
  • Reasoning (R): Investors prefer to trade in securities listed in premier stock exchanges like BSE, NSE, etc.

Explain the following term/concept.

Secondary market


Bank Rate means.


Capital market do not provide _________


Primary and secondary markets


To be listed on OTCEI, the minimum capital requirement for a company is


What are the methods of floatation in Primary Market?


Which market directly contributes to capital formation?


‘While there are benefits of going public as a source of finance for a company, it also means additional obligations'.

Analyse and justify the statement.


Which of the following statements is incorrect?


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


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