AMITYINTERNATIONAL SCHOOL,MAYURVIHAR

XI-BUSINESS STUDIES
ASSIGNMENT-SOURCES OF BUSINESS FINANCE

Q1. The term 'redeemable' is used for

(a) Preference shares (b) Commercial paper
(c) Equity shares (d) Public deposits

Q2. ADRs are issued in

(a) Canada (b) China
(c) India (d) USA

Q3. Debentures represent

(a) Fixed capital of the company (b) Permanent capital of the company
(c) Fluctuating capital of the company (d) Loan capital of the company

Q4. _________ are debt instrument that does not carry a specific rate of interest, but issued at a
heavy discount.
(a) Debentures (b) Equity shares
(c) Bonds (d) None of these

Q5. _________ is commonly used by business organisations as a source of short-term financing.

(a) Lease financing (b) ADRs
(c) Trade Credit (d) None of these

Q6. _________ are the unsecured short-term deposits made by company with another company.
(a) Indian Depository Receipt (b) American Depository Receipt
(c) Global Depository Receipt (d) Inter Corporate Deposits

Q7. Match the columns:

(i) It facilitates the purchase of goods and services (a) Trade Credit
without making immediate payment.
(ii) It refers to that parts of profits which is kept and (b) Preference Shares
reserve for use in the future.
(iii) This source of finance has characteristics of both
equity shares and debentures. (c) Retained Earnings

Q8. Finance invested in fixed assets is called working capital. True/ False?

Q9. Preference shares carry preferential rights over the equity shares as regards payment of
dividend and repayment of capital. True/ False?

Q10. Name the capital invested in permanent assets.

Q11. Equity shareholders are called

(a) Owners of the company (b) Partners of the company
(c) Executives of the company (d) Guardian of the company

Q12. Funds required for purchasing current assets is an example of

(a) Fixed capital requirement (b) Ploughing back of profits
(c) Working capital requirement (d) ICD

Q13. Pubic deposits are the deposits that are raised directly from
(a) The public (b) The directors
(c) The auditors (d) The owners

Q14. Name the first bank which issued IDR.

(a) SBI (b) HDFC bank
(c) Standard Chartered bank (d) Yes bank

Q15. What is the status of debenture holders ?

(a) Owners (b) Creditors
(c) Investors (d) Employees

Q16. Working capital is raised through short term funds. True/ False ?

Q17. A debenture is an acknowledgement of debt. True/ False ?

Q18. Which concern - a trading concern or a manufacturing concern - will have large amount of
fixed capital?

Q19. Name the source of finance which is available in the normal course of purchase of goods.

Q20. A company wants to issue such shares which do not have the right of preference for
payment of dividend and refund of capital at the time of liquidation.

Identify such shares.

Q21. What preferential rights are enjoyed by preference shareholders. Explain.

Q22. Name any three special financial institutions and state their objectives.

Q23. What is the difference between GDR and ADR? Explain

Q24. What advantages does issue of debentures provide over the issue of equity shares?

Q25. Discuss the financial instruments used in international financing.