Question

10. Internal sources of capital are those that are

(a) generated through outsiders
(b) generated through loans such as suppliers
(c) generated through issue of shares
(d) generated within the business

Short Answer Questions

1. What is business finance? Why do businesses need funds? Explain.

2. List sources of raising long-term and short-term finance.

3. What is the difference between internal and external sources of raising funds? Explain.

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

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

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

Long Answer Questions

1. Explain trade credit and bank credit as sources of short-term finance for business enterprises.

2. Discuss the sources from which a large industrial enterprise can raise capital for financing modernisation and expansion.

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

4. State the merits and demerits of public deposits and retained earnings as methods of business finance.

5. Discuss the financial instruments used in international financing.

6. What is a commercial paper? What are its advantages and limitations

Projects/Assignment

1. Collect information about the companies that have issued debentures in recent years. Give suggestions to make debentures more popular.

2. Institutional financing has gained importance in recent years. In a institutions that provide financial assistance to Indian companies. scrapbook paste detailed information about various financial

3. On the basis of the sources discussed in the chapter, suggest suitable options to solve the financial problem of the restaurant owner.

4. Prepare a comparative chart of all the sources of finance. featuris ga Chain Stores​

Answer 1

Answer:

Internal sources of capital are those that are generated from within the business mainly through reinvestment of profits it is also referred as owner's investment.Retained profit, sale of fixed assets, debt collection are some of the internal sources of finance or capital