Question

Give any one limitation of inter corporate deposits.​

Answer 1

Answer:

short-term finance a) Fixed Burden b) Charge on assets c) Difficulty of raising finance d) Uncertainty

Answer 2

Explanation:

Inter-company deposits suffer from following disadvantages:

A company cannot lend more than 10 per cent of its net worth to a single company and cannot lend beyond 30 per cent of its net worth in total. ii. The market for such source of financing is not structured.