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.
In leasing agreement what right is given to lessee?
Q 3.
Differentiate between a share and a debenture.
Q 5.
What is a commercial paper? What are its advantages and limitations?
Q 6.
Give the full form of GDR and ADR.
Q 7.
Explain in detail the types of debenture a company can issue.
Q 8.
Name two sources of funds under owner's fund.
Q 9.
Explain trade credit and bank credit as sources of short term finance for business enterprises.
Q 10.
Which deposits are directly raised from the public?
Q 11.
State two factors affecting the working capital requirement of a firm.
Q 12.
What do you mean by discounting of bills of exchange?
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.
Specify the objective of I.D.B.I.
Q 16.
What is business finance? Why do businesses need funds? Explain.
Q 17.
Preference shares are preferred by company but not by investors. Why?
Q 18.
Who regulates the acceptance of public deposits?
Q 19.
What is factoring? Discuss its pros and cons.
Q 20.
State the meaning of finance. What factors determine working capital and fixed capital requirements of a business?
Q 21.
Name any three special financial institutions and state their objectives.
Q 22.
What are Indian depository receipts (IDRs)?
Q 23.
What is lease financing? Discuss its merits and demerits.
Q 24.
Discuss the financial instruments used in international financing.
Q 25.
Why is equity share capital called Risk Capital'?
Q 26.
What are retained profits? Discuss their advantages and disadvantages.
Q 27.
Explain different types of preference shares which can be issued by a company.
Q 28.
State various sources of short and medium term funds.
Q 29.
Why preferences are given to preferential shares?
Q 30.
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 31.
What are public deposits?
Q 32.
Name zones of the Lessors and Lessees in India.
Q 33.
What are the two important functions of factors?
Q 34.
What is the status of debenture holders?
Q 35.
Describe in brief the features of equity shares.
Q 37.
What is a trade credit?
Q 38.
Who are called the owners of a company?
Q 39.
What preferential rights are enjoyed by preference shareholders? Explain.
Q 40.
State two factors affecting the fixed capital requirement of a firm.
Q 41.
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 42.
State various sources of long term funds.
Q 43.
Describe briefly the factors responsible for selecting a source of finance.
Q 44.
What are the preferences given to preference shareholders?
Q 45.
Debentures are good from debenture holders point of view but not for business. Do you agree? Explain.
Q 46.
What is the difference between GDR and ADR? Explain.
Q 47.
Preference shares are not suitable for which kind of investors?
Q 48.
List different types of finance.
Q 49.
List sources of raising long-term and short term finance.
Q 50.
What are retained earnings?
