Q 1:- What are CSR and its impacts?

A: - CSR:

"Corporate Social Responsibility is the continuing commitment by business to

behave ethically and contribute to economic development while improving the quality of life of
the workforce and their families as well as of the local community and society at large"

OR

“CSR is about capacity building for sustainable livelihoods. It respects cultural differences
and finds the business opportunities in building the skills of employees, the community and
the government"

IMPACTS:-

The impacts of the CSR are as follows:-

 Systematically measure the impact of CSR on social, economic and environmental goals
of the European Union
 Provide insights on corporate and institutional factors that drive the creation of CSR
impact
 Develop and test methods to assess CSR impact and provide recommendations on how to
improve them

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Q 2: - How can you get success?

A: - The major points through which we can get success are as follows:-

 Have a simple and unassuming manner of life.

 Live not to eat, but eat to live.
 Bear no envy. Commit no slander. Speak no falsehood. Practice no deceit. Harbor no
malice. You will be ever joyful, happy and peaceful.
 Righteousness is the rule of life. Lead a virtuous life. Strictly adhere to Dharma. Human
life is not human without virtues. Study the lives of saints and draw inspiration from
them.
 Cultivate a melting heart, the giving hand, the kindly speech, the life of service, equal
vision, and impartial attitude. Your life will, indeed, be blessed.
 Lead a regulated life. Take hold of each day as if it were the last day, and utilize every
second in prayer, meditation and service. Let your life become a continuous sacrifice to
God.
 Live in the present. Forget the past. Give up hopes of the future.
 Understand well the meaning of life, and then start the quest.
 Life is thy greatest gift. Utilize every second profitably.
 Success often comes to those who dare and act. It seldom comes to the timid.

Q 3: - What is the difference between Authorized Capital and Paid-up Capital?

A: Authorized Capital: -

“The amount of capital that a company has been authorized to rise by

way of equity and preference shares through the Articles of Association / Memorandum of
Association of the company. This is typically the capital at the time it has been incorporated.
The face value is also closely linked to the first issue of authorized capital.”

Paid up Capital: -

“Capital  that a company raises in a financing round. That is, the paid in
capital is the money a  publicly-traded company receives when it issues new stock, as an
additional issue. It is important to note that companies only raise paid in capital on
the primary market, they do not receive any additional money from trades on the secondary
market. The paid in capital goes toward expanding or improving upon a company's
operations. It is also called paid-in surplus or the contributed capital.”

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Q 4: - Why financial institution provide short term, long term, medium term Financing?

A: Long Term Financing:-

The purpose of financial institution to provide long term financing is as follows: -

 To Finance fixed assets

 To finance the permanent part of working capital
 Expansion of Companies
 Increasing Facilities
 Construction Projects on a big Scale
 Provide Capital for funding the Operations. This helps in adjusting the cash flow.

Short Term Financing: -

The purpose of financial institution to provide short term financing so that the Company can use
these funds to run their day-to-day operations including payment of wages to employees,
inventory ordering and supplies An example of short tern financing could be when a firm places
an order for raw materials, it pays with finance and anticipates to recoup this finance by selling
these goods over the period of a year.

Medium Term Financing: -

The purpose of financial institution to provide medium term financing so that the Company can
use these funds for expansion and modernization of existing plant. It is also needed for the
purchase of assets, costly raw material. It may be used to meet the cost of maintenance, repair,
improvement and betterment of plant. Lastly, it can be used to repay the short term loans.

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Q 5: - Define Investment Corporation, venture capitalist, Angel investor, Insurance
Companies and Stock broker?

A: Investment Corporation: -

“Investment companies are business entities, both privately and publicly owned, that manage,
sell, and market funds to the public. They typically offer  investors a variety of funds and
investment services, which include portfolio management, recordkeeping, custodial, legal,
accounting and tax management services.”

Venture Capitalist: -

“Money provided by investors to startup firms and small businesses with perceived long-term
growth potential. This is a very important source of funding for startups that do not have
access to capital markets. It typically entails high risk for the investor, but it has the potential
for above-average returns.”

Angel Investor: -

“An investor who provides financial backing for small startups or entrepreneurs. Angel
investors are usually found among an entrepreneur’s family and friends. The capital they
provide can be a one-time injection of seed money or ongoing support to carry the company
through difficult times.”

Insurance Companies: -

“A  company that offers insurance policies to the public, either by selling directly to

an  individual or through another source such as an employee's benefit plan.
An  insurance company is usually comprised of multiple insurance agents. An insurance
company can specialize in one type of insurance, such as  life insurance,  health insurance, or
auto insurance, or  offer multiple types of insurance.”

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Stock Broker: -

“A stockbroker invests in the stock market for individuals or corporations. Only members of
the stock exchange can conduct transactions, so whenever individuals or corporations want to
buy or sell stocks they must go through a brokerage house. Stockbrokers often advise and
counsel their clients on appropriate investments. Brokers explain the workings of the stock
exchange to their clients and gather information from them about their needs and financial
ability, and then determine the best investments for them. The broker then sends the order out
to the floor of the securities exchange by computer or by phone. When the transaction has
been made, the broker supplies the client with the price. The buyer pays for the stock and the
broker transfers the title of the stock to the client and performs clearing and settlement
procedures. The beginning stockbroker’s first priority is learning the market. One broker said,
“First you have to decide whether you have an interest in the stock market. This will
determine how well you’ll do. If you’re just interested in making money you won’t get very
far.” Stockbrokers spend their time in a fast-paced office, usually working from nine to five,
unless they are just starting out or have to meet with clients. The new broker spends many
hours on the phone building up a client base. Sometimes brokers teach financial education
classes to expose themselves to potential investors who may then become their clients.”

Q 6: - What is everyday financial Activity?

A: The everyday financial activities are as follows: -

 Banking
 Insurance
 Securities, commodities, and other investments

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Q 7: - How many ways a Bank provides Short term financing?

A: There are many methods for which a firm can seek short terms financing some of these
include:

 Overdrafts
 Short-term loans
 Bills of exchange
 Promissory notes/commercial paper
 Inventory loan
 Letters of credit
 Short term Eurocurrency advances
 Factoring

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