English

Answer Each of These Questions in About Fifteen Words: Name the Sources of Demand for Capital Comes From. - Entrepreneurship

Advertisements
Advertisements

Question

Answer each of these questions in about fifteen words:

Name the sources of demand for capital comes from.

Short/Brief Note
Advertisements

Solution

 Capital market consists of lenders and borrowers:

  1. Lenders supply the funds
  2. Investors demand the funds The demand for capital comes from:
  1. Industrial Sector – It comes from the private sector into manufacturing or other economic activities.
  2. Government
shaalaa.com
  Is there an error in this question or solution?
Chapter 6: Resource Mobilization - Section A: Finance [Page 245]

APPEARS IN

CBSE Entrepreneurship [English] Class 12
Chapter 6 Resource Mobilization
Section A: Finance | Q 2.2 | Page 245

RELATED QUESTIONS

Explain the recent Capital Market reforms in India.


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 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:

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


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’.


High Order Thinking Skills

Why primary market is also known as new issue market? Give one reason.


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.

Differentiate between the money market and the capital market.


Primary market is also known as new issue market.


Explain the following term/concept.

Secondary market


Complete the correlation.

Primary market: New issues launched to raise capital:: ______: Old issues through stock 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.


Bank Rate means.


What are the methods of floatation in Primary Market?


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.

How much money was raised by the company through E-IPO's?


Who plays a very vital role as a financial intermediary?


‘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.


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?


In its vital role as a financial intermediary, capital markets satisfies the tastes of the savers and the need of the investors. Evaluate the given statement.


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×