Sources of Finance for a joint stock company

Long Term and Short Term funds can be raised from two types of sources. What are they?

• Owned Funds

• Collected Funds

• Sold Funds

• Borrowed Funds or Loan Capital

Fill in the blanks:

Dividend on ______ shares is paid after paying dividend on ________ shares.

• sweat equity , preference

• bonus, rights

• equity, preference

• Sweat equity, equity

Which of the following is NOT an advantage of equity shares?

• Source of Strength

• No burden on profits

• No charge on assets

• Permanent Capital

Fill in the Blanks:

______ shares are the shares which carry certain privileges or preferential rights-both regarding the dividend and the return of capital.

• Sweat Equity

• Equity

• Preference

• Rights

Funds raised through _____ provide a financial base to the Company.

• shares

• equity shares

• preference shares

• bonus shares

Sweat Equity shares are the shares issued by a company under Section_____ of the Companies Act.

• 69A

• 79A

• 89A

• 99A

Retained earnings are also called_______

• Ploughing ahead of profits

• Ploughing back of profits

• Ploughing of profits

A ____________ is a document or certificate issued by a company as proof of the money lent to it by the holder.

• Debenture

• Denture

• Share

Commercial banks usually provide ______ finance because most of their deposits are ______ deposits.

• long-term, short-term

• long-term, long-term

• short-term, long-term

• Short-term, short-term

Depositors get a _____ rate of interest than/as that available on bank deposits.

{Hint: Public Depositors}

• higher

• lower

• equal