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Chapters
2: Job Analysis and Manpower Planning
3: Staff Recruitment
4: Staff Selection
5: Staff Training
6: Staff Morale
7: Staff Motivation
8: Staff Remuneration
9: Staff Leadership
10: Staff Appraisal
11: Staff Promotion and Transfer
12: Staff Separation
13: Emerging Trends in Human Resources
14: Business Communication
15: Business Correspondence
16: Reports and Report Writing
17: Various Business Entities
▶ 18: Sources of Business Finance
19: Globalisation
20: E-Business
21: Outsourcing
22: Business Regulators and Intermediaries
![C. B. Gupta solutions for Business Studies [English] Class 12 ISC chapter 18 - Sources of Business Finance - Shaalaa.com](/images/business-studies-english-class-12-isc_6:97d2016e3d3f47998118bcfe2d4e3d43.jpg "C. B. Gupta solutions for Business Studies [English] Class 12 ISC chapter 18 - Sources of Business Finance")
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Solutions for Chapter 18: Sources of Business Finance
Below listed, you can find solutions for Chapter 18 of CISCE C. B. Gupta for Business Studies [English] Class 12 ISC.
C. B. Gupta solutions for Business Studies [English] Class 12 ISC 18 Sources of Business Finance EXERCISES [Pages 267 - 270]
Objective Type Questions MCQ's {Select the best Alternative)
Bills of Exchange is an Instrument of ______.
ICD
Trade Credit
Loan
None of these
Debenture-holders are called as ______.
Employees of the Company
Owner of the Company
Creditors of the Company
None of these
Who among the following are called owner of the company?
Debenture-holder
Employees
Directors
Equity shareholders
Preference shareholders get preference over equity share for ______.
Payment of dividend
Voting
Participation in management
None of these
Which Instrument saves tax?
Equity Shares
Debentures
Retained Earnings
Preference Shares
Retained Earnings are also known as ______.
Capital
Ploughing back of profit
Surplus profit
Gross profit
Who controls the company?
Debentures-holder
Employees
Shareholders
None of these
Public deposits cannot exceed ______.
10% of share capital and free reserves
25% of share capital and free reserves
50% of share capital and free reserves
No limit
The unsecured source of borrowed fund which can be raised for period of six months to three years is ______.
Public deposits
Preference shares
Debenture
None of these
Which capital is used for buying current assets?
Fixed Capital
Working Capital
Both Fixed Capital and Working Capital
None of these
The deposit made by one company with another company is called ______.
Public deposits
Inter-corporate deposit
Loan from Commercial Bank
Loan from financial Institutions
International sources of finance are ______.
ADR and GDR
FDI
ADR, GDR and FDI
All of these
Fill in the blanks with suitable words given in brackets.
Equity shareholders are called ______.
Owners of the company
Partners of the company
Executives of the company
Guardian of the company
Trade credit is the example of ______.
Long-term finance
Medium-term finance
Short-term finance
Internal sources of capital are those that are generated ______.
through outsiders
through commercial banks
within the business
Risk capital foundation established by ______.
IDBI
ICICI
IFCI
GDR is ______.
foreign direct investment
free direct investment
forestry direct investment
Very Short Answer Type Questions
How do borrowed funds put a lot of burden on business?
Which cost should be taken into consideration while deciding about the source of funds?
What are the external source of funds?
What are retained profits called “self-financing”?
Why is share capital called owner’s funds?
Who regulates the public deposits?
Which source of business finance does ploughing back of profit indicate?
What is borrowed capital?
Explain the following term/concept.
Trade credit
Why are retained earnings considered as an uncertain source of funds?
What are retained earnings?
Define share.
Why are debentures known as borrowed funds?
Which source of fund provides tax benefits?
What is the position of equity shareholders with respect to the company?
Why it is said that equity shareholders are the residual owners?
Which source of business finance does self-financing indicate?
Give the full form of GDRs.
Expand the following:
NBFC
Short Answer Type Questions
Define equity shares.
Define ‘preference shares’.
Define debenture.
Define Retained profits.
What are public deposits?
Define trade credit.
Write a short note discounting of bills of exchange.
What is GDR?
Who are called 'Angel Investors'?
Briefly explain the following source of finance:
Venture Capitalist
Briefly explain crowd funding.
What is Peer-to-Peer Lending?
What are retained profits?
Why preference shares called hybrid securities?
What is meant by the following term with reference to the sources of finance?
Peer to peer Funding
Public deposits are deposits made by the public in nationalised banks.
True
False
With reference to Financing, briefly explore factoring.
Distinguish between equity shares and preference shares.
Distinguish between shares and debentures.
Explain Retained Profits as sources of long term finance.
Explain term loans as sources of long term finance.
“Public deposits, trade credit and bills discounting are sources of short term finance”.
“Angel Investors and Venture Capitalists are a boon for new enterprises.” Discuss.
“Crowd Funding and Peer-to-Peer Funding are yet to emerge as major sources of finance”. Explain.
With reference to business finance, explain the following:
Preference shares
With reference to business finance, explain the following:
Debentures
With reference to business finance, explain the following:
Retained earnings
With reference to business finance, explain the following:
Public Deposits
State the function of factoring.
Explain angel investors as a source of finance for a business venture.
Explain crowdfunding as a source of finance for a business venture.
Akshay is planning to start manufacturing of educational toys for children. He has some savings and has also borrowed some money from his friends and relatives to invest in this business. However, he needs more money to start the business.
Name and explain any two sources of business finance available to him.
Distinguish between angel investors and venture capitalists.
Briefly explain the process of financing a business through Retained Profits.
Read the passage given below and answer the questions that follow.
| ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi-NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans. |
- Briefly explain the Angel Investors’ source of finance.
- State whether the Angel Investors’ source can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
Read the passage given below and answer the questions that follow.
| ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi-NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans. |
- Briefly explain the factoring source of finance.
- State whether the factoring source can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
Read the passage given below and answer the questions that follow.
| ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi-NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans. |
- Briefly explain the Global Depository Receipts source of finance.
- State whether the Global Depository Receipts source can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
Read the passage given below and answer the questions that follow.
| ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi-NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans. |
- Briefly explain the source of finance for loans from financial institutions.
- State whether the Loans from Financial Institutions source can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
Briefly explain crowd funding.
What are public deposits?
Write a short note discounting of bills of exchange.
What are retained profits?
C. B. Gupta solutions for Business Studies [English] Class 12 ISC 18 Sources of Business Finance QUESTION BANK [Pages 270 - 272]
Write a note on Angel Investors.
State any two features of venture capital.
Write a brief note on Peer-to-Peer funding.
What is the Importance of Retained Earnings?
"Crowd funding and peer to peer funding are similar yet different" Comment
Explain the following term/concept.
Trade credit
What are the eligibility for venture capital financing?
Distinguish between equity shares and preference shares.
Distinguish between shares and debentures.
Explain the advantages of equity shares as a source of long-term finance.
Explain the disadvantages of equity shares as a source of long-term finance.
Discuss the importance of preference shares as sources of long-term finance.
Explain the disadvantages of preference shares.
State any three advantages of debenture issue as a source of finance.
State any four disadvantages of debentures.
Discuss the advantages of retained profits as a source of finance.
Discuss the disadvantages of retained profits as a source of finance.
Explain any two advantages of Public deposits.
Describe the disadvantages of public deposits.
Solutions for 18: Sources of Business Finance
C. B. Gupta solutions for Business Studies [English] Class 12 ISC chapter 18 - Sources of Business Finance
Shaalaa.com has the CISCE Mathematics Business Studies [English] Class 12 ISC CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. C. B. Gupta solutions for Mathematics Business Studies [English] Class 12 ISC CISCE 18 (Sources of Business Finance) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
Further, we at Shaalaa.com provide such solutions so students can prepare for written exams. C. B. Gupta textbook solutions can be a core help for self-study and provide excellent self-help guidance for students.
Concepts covered in Business Studies [English] Class 12 ISC chapter 18 Sources of Business Finance are Overview of Sources of Business Finance, Kinds of Shares> Equity Shares, Kinds of Shares> Preference Shares, Retained Profits, Loans, Public Deposits, Trade Credit, Concept of Debentures, Global Depository Receipts (GDRs), Angel Investors, Venture Capitalists, Crowd Funding, Peer-To-Peer Funding, Factoring, Accounting Treatment> Discounting the Bill of Exchange.
Using C. B. Gupta Business Studies [English] Class 12 ISC solutions Sources of Business Finance exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in C. B. Gupta Solutions are essential questions that can be asked in the final exam. Maximum CISCE Business Studies [English] Class 12 ISC students prefer C. B. Gupta Textbook Solutions to score more in exams.
Get the free view of Chapter 18, Sources of Business Finance Business Studies [English] Class 12 ISC additional questions for Mathematics Business Studies [English] Class 12 ISC CISCE, and you can use Shaalaa.com to keep it handy for your exam preparation.
