Correct Answer: National Bank for Agriculture and Rural Development

Solution : The correct answer is the National Bank for Agriculture and Rural Development.

Through their pilot project, e-Shakti, the National Bank for Agriculture and Rural Development (NABARD) pioneered the digitization of self-help groups (SHGs) in India. This initiative began with the goal of addressing specific challenges, such as the quality of SHG bookkeeping, and assisting banks in making informed lending choices about the groups.

Correct Answer: Non-profit MFIs

Solution : The answer is Non-profit MFIs.

In general, microfinance institutions in India fall into three categories: mutual benefit, for-profit, and not-for-profit. Only non-banking financial businesses, or NBFC-MFIs, which are for-profit microfinance institutions, are subject to Reserve Bank of India (RBI) regulation.

Correct Answer: Acquiring funds for business operations and expansion
 

Solution : The correct answer is (b) Acquiring funds for business operations and expansion

Business finance involves acquiring the necessary funds and managing financial resources to support a company's day-to-day operations, projects, and future growth. It encompasses activities related to budgeting, financial forecasting, investment decisions, obtaining loans or equity, managing working capital, and overall financial planning to ensure the efficient use of financial resources for achieving the company's objectives.

Correct Answer: Centralisation and Decentralization
 

Solution : Decentralization and centralisation is highlighted here. A proper match of centralisation and decentralization of the work force is mandatory for the effective working of the organisation.
Hence Option D is correct.

Correct Answer: Financial planning

Solution : The correct answer is (c) Financial planning

Financial planning is the process of determining the company's financial goals and objectives and developing strategies to achieve them. It includes decisions related to choosing the right sources of funds to support business activities, manage operational costs, fund expansions, invest in new projects, and achieve sustainable growth. It's about efficiently managing financial resources to align with the company's strategic goals and ensure financial stability and success. Marketing strategy, inventory management, and human resource allocation are important aspects of business operations but are not specifically focused on selecting funding sources.

Correct Answer: Long-term debt securities

Solution : The correct answer is (c) Long-term debt securities

Debentures are long-term debt instruments issued by companies or institutions to raise funds. Debenture holders are creditors to the company or institution and are entitled to receive periodic interest payments at a specified rate. The principal amount is repaid to debenture holders at maturity. Unlike equity shares debentures do not represent ownership in the company. They are a form of borrowing by the issuing entity. Additionally, debentures are not short-term borrowing or government-issued bonds .

Correct Answer: Debentures

Solution : The correct answer is (c) Debentures

Debentures are long-term debt instruments issued by companies to raise funds from the public or institutional investors. Holders of debentures are creditors of the company and are promised a fixed rate of interest and repayment of the principal amount at maturity. Unlike equity shares, debenture holders do not have ownership rights in the company.

Correct Answer: Dividends on these shares can be postponed

Solution : The correct answer is (c) Dividends on these shares can be postponed

Non-cumulative preference shares do not carry the right to accumulate unpaid dividends. If the company is unable to pay dividends in a particular period, the shareholders of non-cumulative preference shares do not have the right to claim those unpaid dividends in the future. This is in contrast to cumulative preference shares, where any unpaid dividends accumulate and must be paid in future periods before any dividends are distributed to equity shareholders.

Correct Answer: National Housing Bank (NHB)

Solution : The correct answer is (b). National Housing Bank (NHB)

The National Housing Bank (NHB) is an apex financial institution in India that specializes in housing finance. It was established by the Indian government to promote and regulate the housing finance sector in the country. NHB has the authority to oversee and regulate housing finance companies, ensuring compliance with regulatory guidelines and promoting stability in the housing finance market.