Sources of Business Finance
Short Answer Questions:
1. What is business finance? Why do businesses need funds? Explain.
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2. List sources of raising long-term and short-term finance.
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3. What is the difference between internal and external sources of raising funds? Explain.
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4. What preferential rights are enjoyed by preference shareholders. Explain.
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5. Name any three special financial institutions and state their objectives.
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6. What is the difference between GDR and ADR? Explain.
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Long Answer Questions
1. Explain trade credit and bank credit as sources of short-term finance for business enterprises.
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2. Discuss the sources from which a large industrial enterprise can raise capital for financing modernisation and expansion.
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3.What advantages does issue of debentures provide over the issue of equity shares?
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4.State the merits and demerits of public deposits and retained earnings as methods of business finance.
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