CBSE Class 11 Business Studies Sources of Business Finance Worksheet

 SOURCES OF BUSINESS FINANCE

1. Which concept is related with the arrangement of funds to run the business smoothly?

2 Which capital is required for acquisition of plant and machinery?

3. Which capital is required to conduct the day to day affairs of the business? 

4. Name the funds that are provided by the owners of an enterprise. 

5. What type of funds are raised through borrowings? 

6 Name the internal sources of finance which can be used for the expansion of business.

7 Does public deposit create any charge on the assets of the company? 

8 Which source of business finance represents unsecured short-term deposits made by one company with another company?

9. Name any two financial institutions that provide financial assistance to business enterprises.

10 Mathew is an ambitious man. He wants to participate in the affairs of the company. What will he choose amongst the two-preference share or equity share?

11 Which source is considered as the most important source of raising long-term finance?

12. Write a short note on `ploughing back of profits’ by companies. What advantages one can accrue out of them?

13. Which type of source of finance facilitates the purchase of supplies without immediate payments? State its merits and demerits also.

14. Discuss in brief the types of Inter-Corporate Deposits(ICD) 

15. If you are interested in issuing preference shares, then to convince others, what advantages will you reveal for the same?

16. Give any three differences between shares and debentures. 

17 Discuss the features of equity shares as a source of finance. 

18. Identify and discuss the merits and limitations of source of finance in which holders are entitled to receive interest and are deemed to be the creditors of the company.

19. What is meant by Business Finance? Why do business need funds? Mention any four reasons.

20. Distinguish between owner’s fund and borrowed fund. 

21. What is meant by Public deposit? State its merits and limitations. 

22. Write short note on the following financial instruments used in international financing:
a) American Depository Receipts(ADR) b) Global Depository Receipts(GDR)

23. Discuss the sources from which a large Industrial enterprise can raise capital for financing, modernization and expansion.

24. Differentiate between equity shares and preference shares. 6

25. Explain merits and limitations of raising funds through issue of equity shares.

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