What is business finance? Why do businesses need funds? Explain.

3

(a)

What is the difference between internal and external sources of raising funds? Explain.

3

(a)

Name any three special financial institutions and state their objectives.

3

(a)

Discuss SEBI guidelines regarding issue of Indian Depository Receipts.

3

(a)

Why does business enterprise need finance?

3

(a)

Differentiate between Fixed Capital and Working Capital.

3

(a)

Preference shares are preferred by company but not by investors. Why?

3

(a)

Write a short note on the features of GDRs.

3

(a)

Classify internal and external sources on the basis of time.

3

(a)

Mr. John has Rs.1,00,000 for investment purposes. Should he invest in equity shares, preference shares, public deposits or debentures? Justify your answer.

3

(a)

As a source of finance retained profit is better than other sources. Do you agree with this view? Give reasons for your answer.

3

(a)

Retained earnings are not a good source from the values point of view as it is the right of equity shareholders. Do you agree? Justify your answer.

3

(a)

Debentures are good from debenture holders point of view but not for business. Do you agree? Explain.

3

(a)

Differentiate between Short Term Finance and Long Term finance.

3

(a)

Differentiate between Internal Sources and External Sources.

3

(a)