SOURCES OF FINANCE

Public deposits are the deposits that are raised directly from

• The public

• The directors

• The auditors

• The owners

The Financial Institutions are established by:

• Both State and Central Govt.

• State Govt.

• Central Govt.

• Municipal Corporation

Trade Credit is granted to those customers who have reasonable amount of:

• Funds in their Bank A/c

• Financial standing and goodwill

• Weakness

• Zero Balance in their A/c

What does Debenture holders get in return of their debt in company?

• Dividend

• Interest

• Profit

• Loss

Financial institutions aim at promoting the industrial development of a country, these are also called ?

• Children banks

• Development banks

• Rural banks

• urban banks

Retained earnings is also known as:

• Residual owners of the company

• Loan capital of the company

• Short term capital of the company

• Ploughing back of profits

Short term funds are those funds which are required for a period not exceeding:

• Three years

• Two years

• One year

• Five years

Assets, which are mortgaged, with the commercial banks can‟t be used in the business.

• True

• False

Assertion: Debentures carry voting rights.

Reason :Debentures don't put a permanent burden on the earnings of a company.

• Both A and R are true and R is the correct explanation of A

• Both A and R are true and R is not the correct explanation of A

• Both A and R are false

• A is true but R is false

Which of the following are types of Debentures?

• Zero Discount

• Secured

• Convertible

• All of the above