Question : Case Study: PQR Enterprises - Funding Strategies for Diversification

PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.

Questions : Different Sources of Finance

In the context of financing, what are debentures?

Option 1: Equity shares with voting rights
  

Option 2: Short-term borrowing from banks
    

Option 3: Long-term debt securities

Option 4: Government-issued bonds

Question : Case Study: XYZ Ltd. - Raising Finance for Expansion

XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.

Questions : Different Sources of Business Finance

XYZ Ltd. is considering borrowing funds by issuing long-term debt securities. What are these securities called?

Option 1: Equity shares
 

Option 2: Preference shares
  

Option 3: Debentures

Option 4: ADRs

Question : Case Study: ABC Corporation - Financing Growth Strategies

ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.

Questions : Equity Shares and Preference Shares

If ABC Corporation issues non-cumulative preference shares, what does this mean?

Option 1: Dividends on these shares must be paid before equity shareholders
  

Option 2: The company cannot issue any more preference shares
 

Option 3: Dividends on these shares can be postponed

Option 4: Shareholders have no voting rights

Question : Which of the following institutions is responsible for regulating and supervising the functioning of housing finance companies in India?

Option 1: Securities and Exchange Board of India (SEBI)

Option 2: National Housing Bank (NHB)

Option 3: Reserve Bank of India (RBI)

Option 4: None of the above

Question : Case Study 3:

MNO Inc. is a well-known conglomerate that is planning to diversify its business operations by acquiring other companies.

Question : 

To finance its acquisition plans, MNO Inc. is considering issuing bonds. What type of market activity does this represent?

Option 1: Primary market
 

Option 2: Secondary market
 

Option 3: Money market

Option 4: Capital market

Question : Assertion-Reason Questions: Chapter - Sources of Business Finance

Questions : Business Finance and Its Meaning

Assertion: Financial planning plays a critical role in optimizing the allocation of funds and resources.

Reason: Financial planning focuses solely on allocating funds to marketing activities.

Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
   

Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
   

Option 3: Assertion is true, but the reason is false.

Option 4: Both assertion and reason are false.

Question : Which among the following is the sole note-issuing authority in India?

Option 1: Industrial Finance Corporation of India

Option 2: National Payments Corporation of India

Option 3: Reserve Bank of India

Option 4: State Bank of India

Question : Case Study: PQR Enterprises - Funding Strategies for Diversification

PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.

Questions : Different Sources of Finance

How can PQR Enterprises use retained earnings as a source of finance for its diversification?

Option 1: By selling company assets
   

Option 2: By raising funds through IPOs
   

Option 3: By utilizing accumulated profits

Option 4: By issuing preference shares

Question : Comprehension:

In the following passage some words have been deleted. Fill in the blanks with the help of the alternatives given. Select the most appropriate option for each blank.

Unemployment is a major issue in India that (1)________millions of people across the country. Despite being one of the fastest-growing economies in the world, India has struggled to create (2)________jobs to keep up with its rapidly expanding population. The unemployment rate in India varies widely (3)________ different states and regions. Young people, in particular, face significant challenges in finding employment. Many are highly educated but lack the skills and experience needed to (4)________ in a highly competitive job market. There are many factors contributing to the high levels of unemployment in India. Some of these include a lack of investment in infrastructure, a mismatch between the skills of workers and the needs of employers, and a lack of access to finance for small and medium-sized businesses. The Indian government has launched several initiatives to address the issue of unemployment in the country. These include programs to support small businesses, increase investment in infrastructure and provide vocational training to young people. However, much more needs to be done to create sustainable, long-term employment opportunities for all Indians. Unemployment can have serious social and economic consequences, including poverty, crime and social (5)________.

Select the most appropriate option to fill in blank no. 2.

Option 1: enough

Option 2: few

Option 3: many

Option 4: little

Question : Case Study: ABC Corporation - Financing Growth Strategies

ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.

Questions : Different Sources of Finance

What are GDRs and ADRs, which ABC Corporation is considering as potential sources of finance?

Option 1: Government Debt Records
   

Option 2: Equity shares with higher dividends
    

Option 3: International financial statements

Option 4: Instruments for raising capital in global markets