Question:
Write a short note on the features of GDRs.
Answer:
GDRs have following features:
- A bank certificate issued in more than one country for shares in a foreign company.
The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches. ‘
- A financial instrument used by private markets to raise capital denominated in either U.S. dollars or Euros.
- Holders of GDR are eligible only for capital appreciation and dividend but no voting rights.
- These instruments are called EDRs when private markets are attempting to obtain Euros.
- It is a negotiable instrument and can be traded freely like any other security.
- A holder of GDR can convert it into any other security at any time.
Sources of Business Finance
Q 1.
Write a note on international sources of finance.
Q 2.
In leasing agreement what right is given to lessee?
Q 3.
What is a commercial paper? What are its advantages and limitations?
Q 5.
Name two sources of funds under owner's fund.
Q 6.
Explain in detail the types of debenture a company can issue.
Q 7.
Which deposits are directly raised from the public?
Q 8.
Explain trade credit and bank credit as sources of short term finance for business enterprises.
Q 9.
What advantage does issue of debentures provide over the issue of equity shares?
Q 10.
State two factors affecting the working capital requirement of a firm.
Q 11.
Differentiate between a share and a debenture.
Q 12.
What is business finance? Why do businesses need funds? Explain.
Q 13.
What is lease financing? Discuss its merits and demerits.
Q 14.
Give the full form of GDR and ADR.
Q 15.
Specify the objective of I.D.B.I.
Q 16.
Why does business enterprise need finance?
Q 17.
Discuss the financial instruments used in international financing.
Q 18.
What is factoring? Discuss its pros and cons.
Q 19.
Why is equity share capital called Risk Capital'?
Q 20.
Who regulates the acceptance of public deposits?
Q 21.
State the meaning of finance. What factors determine working capital and fixed capital requirements of a business?
Q 22.
What do you mean by discounting of bills of exchange?
Q 23.
Name any three special financial institutions and state their objectives.
Q 24.
Preference shares are preferred by company but not by investors. Why?
Q 25.
State various sources of short and medium term funds.
Q 26.
What are Indian depository receipts (IDRs)?
Q 27.
What are public deposits?
Q 28.
What is the status of debenture holders?
Q 29.
Explain different types of preference shares which can be issued by a company.
Q 30.
Why preferences are given to preferential shares?
Q 31.
Describe in brief the features of equity shares.
Q 32.
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 33.
Name zones of the Lessors and Lessees in India.
Q 34.
What are the two important functions of factors?
Q 35.
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 36.
What are the preferences given to preference shareholders?
Q 37.
Who are called the owners of a company?
Q 38.
What preferential rights are enjoyed by preference shareholders? Explain.
Q 39.
What are retained profits? Discuss their advantages and disadvantages.
Q 40.
State two factors affecting the fixed capital requirement of a firm.
Q 42.
What is a trade credit?
Q 43.
Discuss the sources from which a large industrial enterprise can raise capital for financing modernisation and expansion.
Q 44.
List sources of raising long-term and short term finance.
Q 45.
Preference shares are not suitable for which kind of investors?
Q 46.
Describe briefly the factors responsible for selecting a source of finance.
Q 47.
Write a short note on the features of GDRs.
Q 48.
Classify internal and external sources on the basis of time.
Q 49.
As a source of finance retained profit is better than other sources. Do you agree with this view? Give reasons for your answer.
Q 50.
State various sources of long term funds.