Question:
Specify the objective of I.D.B.I.
Answer:
Its objective was to coordinate the activities of other financial institutions including commercial banks. The bank performs three types of functions namely, assistance to other financial institutions, direct assistance to industrial concerns and promotion and coordination of financial technique service.
Sources of Business Finance
Q 1.
Write a note on international sources of finance.
Q 2.
What is a commercial paper? What are its advantages and limitations?
Q 3.
In leasing agreement what right is given to lessee?
Q 5.
Name two sources of funds under owner's fund.
Q 6.
Give the full form of GDR and ADR.
Q 7.
Differentiate between a share and a debenture.
Q 8.
Explain in detail the types of debenture a company can issue.
Q 9.
Explain trade credit and bank credit as sources of short term finance for business enterprises.
Q 10.
What is business finance? Why do businesses need funds? Explain.
Q 11.
State two factors affecting the working capital requirement of a firm.
Q 12.
Which deposits are directly raised from the public?
Q 13.
Why does business enterprise need finance?
Q 14.
What advantage does issue of debentures provide over the issue of equity shares?
Q 15.
What do you mean by discounting of bills of exchange?
Q 16.
Specify the objective of I.D.B.I.
Q 17.
Preference shares are preferred by company but not by investors. Why?
Q 18.
State the meaning of finance. What factors determine working capital and fixed capital requirements of a business?
Q 19.
Discuss the financial instruments used in international financing.
Q 20.
What is factoring? Discuss its pros and cons.
Q 21.
Who regulates the acceptance of public deposits?
Q 22.
What is lease financing? Discuss its merits and demerits.
Q 23.
What are Indian depository receipts (IDRs)?
Q 24.
Name any three special financial institutions and state their objectives.
Q 25.
State various sources of short and medium term funds.
Q 26.
Why is equity share capital called Risk Capital'?
Q 27.
What are retained profits? Discuss their advantages and disadvantages.
Q 28.
Explain different types of preference shares which can be issued by a company.
Q 29.
Retained earnings are not a good source from the values point of view as it is the right of equity shareholders. Do you agree? Justify your answer.
Q 30.
What are public deposits?
Q 31.
What is the status of debenture holders?
Q 32.
Why preferences are given to preferential shares?
Q 33.
Name zones of the Lessors and Lessees in India.
Q 34.
What are the two important functions of factors?
Q 35.
Describe in brief the features of equity shares.
Q 37.
Who are called the owners of a company?
Q 38.
What is a trade credit?
Q 39.
Mr. John has ? 1,00,000 for investment purposes. Should he invest in equity shares, preference shares, public deposits or debentures? Justify your answer.
Q 40.
What preferential rights are enjoyed by preference shareholders? Explain.
Q 41.
What are the preferences given to preference shareholders?
Q 42.
State two factors affecting the fixed capital requirement of a firm.
Q 43.
Discuss the sources from which a large industrial enterprise can raise capital for financing modernisation and expansion.
Q 44.
As a source of finance retained profit is better than other sources. Do you agree with this view? Give reasons for your answer.
Q 45.
List different types of finance.
Q 46.
State the merits and demerits of public deposits and retained earnings as methods of business finance.
Q 47.
Describe briefly the factors responsible for selecting a source of finance.
Q 48.
List sources of raising long-term and short term finance.
Q 49.
Preference shares are not suitable for which kind of investors?
Q 50.
Write a short note on the features of GDRs.
