Correct Answer: To raise funds without diluting voting rights

Solution : The correct answer is (d) To raise funds without diluting voting rights

Preference shares allow companies to raise funds from investors without diluting the voting control or ownership of the existing shareholders. Unlike equity shares, preference shares usually do not carry voting rights, enabling the company to secure funding while keeping voting control concentrated among the current ownership or management. Preference shares also provide the company with the flexibility to offer a fixed dividend to investors, ensuring a predictable cash outflow to shareholders, which can be appealing to certain investors and can aid in financial planning.

Correct Answer: Debentures pay fixed dividends
 

Solution : The correct answer is (b) Debentures pay fixed dividends

To elaborate further, debentures are debt instruments where the issuing company agrees to pay a fixed rate of interest to the debenture holders at regular intervals until the maturity date. On the other hand, equity shares represent ownership in a company and do not involve fixed dividend payments. Instead, equity shareholders participate in the company's profits through dividends, which are not fixed and can vary based on the company's performance and decisions.

Correct Answer: Equity shares

Solution : The correct answer is (c) Equity shares

Equity shares represent ownership in a company and provide ownership rights and claims on the company's assets and earnings. When a company issues equity shares, it is essentially selling ownership stakes to investors, allowing them to become shareholders and participate in the company's growth and success. This is a common way for companies to raise funds for their operations, expansions, or other financial needs.

Correct Answer: International Depository Receipt
 

Solution : The correct answer is (b) International Depository Receipt

An International Depository Receipt (IDR) is a financial instrument denominated in a foreign currency and is offered by a non-resident company outside the country where it is listed. IDRs represent shares of the foreign company and can be traded on international stock exchanges, allowing companies to raise capital from investors in foreign markets.

Correct Answer: Dividends on these shares must be paid before any arrears
  

Solution : The correct answer is (b) Dividends on these shares must be paid before any arrears

Cumulative preference shares entitle the shareholders to receive their fixed dividends before any dividends are paid to equity shareholders. If the company is unable to pay dividends in a particular year, the unpaid dividends accumulate and must be paid in future years before any dividends are distributed to equity shareholders. This ensures that the preference shareholders receive their dividends, including any unpaid amounts from previous years, before equity shareholders receive any dividends.

Correct Answer: RBI

Solution : The correct option is RBI.

The microfinance industry is governed by the Reserve Bank of India (RBI), which also has the authority to impose a cap on MFIs' margins and interest rates.

MFIs are institutions that offer remittance services, pension or insurance services, thrift collection services, and microcredit facilities up to Rs 5 lakh.

Correct Answer: Achieving long-term financial goals

Solution : The correct answer is (c) Achieving long-term financial goals

Financial planning involves formulating strategies to manage finances effectively to attain long-term financial objectives. It encompasses various aspects such as budgeting, forecasting, investment planning, risk management, and aligning financial activities with the company's strategic goals. By focusing on long-term financial goals, PQR Enterprises aims to ensure sustainable growth, profitability, and financial stability over an extended period. 

Correct Answer: IPO (Initial Public Offering)
 

Solution : The correct answer is (a) IPO (Initial Public Offering)

An IPO is the first sale of a company's shares to the public, allowing the company to raise capital by selling ownership stakes to a wide range of investors. It's a significant event for a company, as it transitions from being privately held to becoming a publicly traded entity.

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: Planning Commission

Solution : The correct answer is the Planning Commission.

The Planning Commission was established on March 15th, 1950, an advisory body whose primary goal was to create 5-year plans for the nation in line with the USSR. After Prime Minister Narendra Modi's significant announcement on Independence Day, which went into effect on January 1st, 2015, the Union Government replaced the Planning Commission with NITI Aayog.