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Question
Explain the following term/concept.
Deposit
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Solution
Deposit is a short term source of finance for the company and it is used to meet the short term working capital requirements of the company. The company cannot accept deposits for a period of less than 6 months or more than 36 months. The company is liable to pay regular interest on the deposits at a fixed rate along with the principal amount on maturity.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Depositors provide ______ Capital to the company.
Select the correct answer from the options given below and rewrite the statement.
______ has the power to invite deposits from the Public.
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The return or income for the investment of money on deposits is called ______.
Write a word or a term or a phrase which can substitute the following statement.
Return on investment on deposit.
Write a word or a term or a phrase which can substitute the following statement.
Instrument for payment of interest on deposit.
Write a word or a term or a phrase which can substitute the following statement.
An acknowledgement of the fixed deposit accepted by a company.
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Return of deposits on maturity date.
State whether the following statement is true or false.
Fixed Deposit holder is creditor of the company.
State whether the following statement is true or false.
A Private Company cannot accept the deposits from the general public.
Complete the sentence.
A company can accept deposits for the minimum period of ______ months.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Depositor | 1) ____________ |
| b) Return on Deposits | 2) ____________ |
| c) ______________ | 3) Maximum Period of Deposits |
| d) Minimum Period of Deposits | 4) ____________ |
(Interest, Creditor of the company, 36 months, 6 months)
Answer in one sentence.
Who is depositor?
Answer in one sentence.
What is the return on deposit?
Correct the underlined word and rewrite the following sentence.
Depositors are owners of the company.
Correct the underlined word and rewrite the following sentence.
Deposit is a long term source of capital.
Answer in brief.
What precautions are to be borne in mind by the Secretary, while corresponding with Depositors.
Justify the following statement.
The Company Secretary should take certain precautions while corresponding with depositors.
