Question : Case Study 32

UVW Inc. is a technology startup aiming to raise funds for its innovative projects. The company's management is considering different methods of raising capital from the capital market.

Question : 

UVW Inc. is considering raising capital for its projects. Which market is primarily involved in raising capital for long-term investments?

Option 1: Primary market
 

Option 2: Secondary market
 

Option 3: Money market

Option 4: Capital market

Question : Identify the principle of management in the below case.
The head of the sales department asked his subordinate to increase the production due to increased sale of cloth whereas the head of finance department asked not to increase the production of cloth due to risk factor.
 

Option 1: Unity of direction
 

Option 2: Unity of command
 

Option 3: Division of work
 

Option 4: Scaler chain
 

Question : MUDRA is a financial institution set up by the Government of India for the development and refinancing of micro-unit enterprises. The full form of MUDRA is:

Option 1: Micro Urban Development & Refinance Agency

Option 2: Micro Units Development & Refinance Agency

Option 3: Micro Finance Usage Development & Refinance Agent

Option 4: Medium Units Development & Refinance Agency

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

What is the benefit of using retained earnings as a source of business finance?

Option 1: No dilution of ownership
   

Option 2: Higher interest payments
   

Option 3: Guaranteed fixed dividends

Option 4: Immediate infusion of funds

Question : Arrange the following Development Financial Institutions (DFI) in the correct chronological order, according to the year they were set up.

(i) Industrial Credit and Investment Corporation of India (ICICI)

(ii) Industrial Development Bank of India (IDBI)

(iii) Industrial Finance Corporation of India (IFCI)

Option 1: (i)-(iii)-(ii)

Option 2: (iii)-(i)-(ii)

Option 3: (ii)-(i)-(iii)

Option 4: (i)-(ii)-(iii)

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 : 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 : Equity Shares and Preference Shares

If PQR Enterprises issues redeemable preference shares, what does this mean?

Option 1: Shareholders can convert shares into debentures
 

Option 2: Preference shareholders can vote on company decisions
  

Option 3: The company has the option to buy back the shares

Option 4: Dividends on these shares are fixed and guaranteed

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 : In case of dissolution of a partnership firm, what will be the treatment of investment fluctuation Reserve if the value of investment is not given in the assets side of the balance sheet?

Option 1: Transferred to debit side of realization account.

Option 2: Transferred to credit side of realization account

Option 3: Distributed among the partners.

Option 4: none of the above

Question : Ramesh, Ashmit, and Raj have made the decision to launch a toy manufacturing company. They determined the following primary tasks they must complete: I acquiring raw materials; (ii) acquiring machinery; (iii) producing toys; (iv) arranging for financing; (v) selling toys; (vi) determining the locations where they can sell their toys; and (vii) choosing personnel.
They believed that four managers should be selected to oversee production, finance, marketing, and personnel in order to make work more efficient. Identify the step(s) that were taken in the management function.

Option 1: Identifying and dividing the work into manageable activities

Option 2: Departmentalisation

Option 3: Assignment of duties to job positions

Option 4: All of the above