Bihar Board Class 12 (Commerce) Sources of Business Finance — practice questions
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Practice Bihar Board Class 12 (Commerce) Sources of Business Finance in the app →Finance is described as which of the following for any business?Funds used to buy land, machinery and furniture are called what?Funds needed for salaries, rent and raw materials are called what?Which firm would need the largest amount of working capital?Long-term sources of finance meet needs for a period exceeding how long?Medium-term finance is needed for more than one year but less than how many years?Short-term funds are those required for a period not exceeding what?Equity shares and retained earnings are the two main sources of what?Which of these is a borrowed fund?Providers of borrowed funds must be paid what on them?Which one is an internal source of funds?Owner's capital is not required to be refunded during what?Another name for retained earnings is what?Which is a merit of retained earnings?Why are retained earnings an uncertain source of funds?In the buyer's books, trade credit appears as what?Trade credit is commonly used as which type of finance?Trade credit is mainly granted to customers having what?A merit of trade credit is that it does what?Easy trade credit may push a firm into which risky habit?In factoring, receivables are sold to the factor at what?Under recourse factoring, the client is not protected against which risk?Who assumes the entire credit risk under non-recourse factoring?Factoring appeared on the Indian financial scene in which period?Who handles credit control and debt collection in factoring?Factoring becomes costly when invoices are of what kind?In a lease, the owner of the asset is called what?The fixed periodic amount a lessee pays is called what?At the end of the lease period, the asset goes to whom?A merit of lease financing is that it avoids diluting what?A limitation of lease financing is that the lessee never does what?In which year did the RBI let banks enter leasing directly?A company acknowledges a public deposit by issuing what?Which body regulates acceptance of public deposits?Companies generally invite public deposits for up to how long?Why do public deposits not dilute a company's control?Who generally finds it hard to raise public deposits?Compared with bank borrowings, the cost of public deposits is generally what?Commercial paper is a money market instrument that is what?In which year was commercial paper introduced in India?Which firms can raise money through commercial paper?Why is commercial paper highly liquid?The capital of a company is divided into small units called what?Which two types of shares does a company normally issue?A company issues 1,00,000 shares of Rs 10 each. What is the total value?Equity shareholders are called what because they get what is left over?The liability of an equity shareholder is limited to what?When is equity capital repaid?A merit of equity shares for the company is that dividend is what?Preference shareholders receive their dividend at what rate?Preference shares resemble debentures because they bear what?What voting right do preference shareholders generally have?Why do preference shares give no tax saving?Which preference shares carry forward unpaid dividends to later years?Which preference shares share in surplus profit after equity dividend?Convertible preference shares can be changed into what?Debenture holders are termed what of the company?Debentures are an important instrument for raising what?A zero interest debenture gives the investor a return equal to what?Debentures are less costly than equity mainly because interest is what?Debentures suit a company whose sales and earnings are what?Debentures that create a charge on company assets are called what?Debentures transferable by mere delivery are called what?Debentures recorded in the register of debenture holders are called what?A limitation of debentures is that they put what on earnings?Which is a form of bank credit to firms?A merit of bank loans is that business secrecy is what?A bank loan does not need which formality?Before sanctioning a loan, a commercial bank requires the borrower to do what?Government financial institutions are also called what?Financial institutions mainly meet which type of requirements?Besides finance, development institutions also provide what?Short-term financing mostly funds which kind of asset?Which is true of the choice of a source of funds?