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Question
Public deposits are a source of long-term finance.
Options
True
False
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Solution
This statement is False.
Explanation:
Public deposits are generally a source of short-term or medium-term finance. Companies use them to raise funds from the public for a fixed period, usually up to 3 years, making them unsuitable for long-term financing.
RELATED QUESTIONS
Draft a Letter to the depositor informing him/her about payment of interest.
Write a word, term, or phrase that can substitute for
the following statement:
The authority which has power to accept deposits.
State, with reason, whether the following statement is True or False.
A public company can receive deposits from the public to any extent.
Draft a letter to a depositor informing him about payment of interest.
What are the provision and rules of companies Act1956 with respect to Acceptance of Public Deposits?
OR
What are the provision and rules of companies Act1956 with respect to the Invitation of Public deposits?
Multiple Choice Question:
Public deposits are deposits that are raised directly from
State the merits and demerits of public deposits and retained earnings as methods of business finance.
Discuss the importance of public deposits as sources of medium and short-term finance.
Describe the disadvantages of public deposits.
