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Commerce (English Medium) Class 12 - CBSE Question Bank Solutions

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State how sources can broadly be classified into two major categories.

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Answer each of these questions in about fifteen words:

Which sources provide the supply for long-term funds?

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Answer each of these questions in about fifteen words:

Name the sources of demand for capital comes from.

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

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Answer each of these questions in about fifteen words:

Name the two players in the capital market.

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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.

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Answer this question in about fifteen words:

What is Right Issue?

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Answer each of these questions in about fifteen words:

What is a secondary market?

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Answer each of these questions in about fifteen words:

What is the need of secondary market?

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Answer each of these questions in about fifteen words:

In what forms company can raise capital through primary market?

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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?

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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.

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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?

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

Write down the sectors of organized and unorganized market.

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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’.

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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.

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High Order Thinking Skills

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

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Answer each of these questions in about fifteen words:

What is a secondary capital market?

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Who plays a very vital role as a financial intermediary?

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State any one advantage each for a company that opts for private placement and rights issue as a source to raise funds.

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