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 : Debentures and Financial Instruments
What is the purpose of Indian Depository Receipts (IDRs) like the ones ABC Corporation is considering?
Option 1: To raise funds from domestic markets
Option 2: To raise funds for local charity initiatives
Option 3: To provide financial assistance to employees
Option 4: To enable foreign investors to invest in Indian companies
Correct Answer: To enable foreign investors to invest in Indian companies
Solution : The correct answer is (d) To enable foreign investors to invest in Indian companies
IDRs are a financial instrument designed to facilitate foreign investment in Indian companies. They represent shares of a foreign company, typically issued by a foreign depository bank in India. IDRs provide an opportunity for foreign investors to invest in Indian companies and participate in the country's economic growth without directly owning the shares in the Indian company. This mechanism allows Indian companies to tap into international capital markets and broaden their investor base.
Questions : Business Finance and Expansion
Which financial decision involves choosing the appropriate sources of funds for business activities?
Option 1: Marketing strategy
Option 2: Inventory management
Option 3: Financial planning
Option 4: Human resource allocation
What does the term "business finance" refer to?
Option 1: Acquiring funds for personal expenses
Option 2: Managing company personnel
Option 3: Investing in stock markets
Option 4: Obtaining funds for business operations and growth
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