This document contains an exam for a class 11th small business and source of finance course. It includes 1 mark, 4 mark, and 6 mark questions. The questions cover topics like types of share capital, returns on debentures, retained earnings, similarities between ADRs and public deposits, financing needs of businesses, micro small scale industries classification and limits, women-owned enterprises, challenges for small scale industries, and sources of finance for business expansion including debentures, equity, retained earnings, loans from institutions like NABARD, and international sources.
This document contains an exam for a class 11th small business and source of finance course. It includes 1 mark, 4 mark, and 6 mark questions. The questions cover topics like types of share capital, returns on debentures, retained earnings, similarities between ADRs and public deposits, financing needs of businesses, micro small scale industries classification and limits, women-owned enterprises, challenges for small scale industries, and sources of finance for business expansion including debentures, equity, retained earnings, loans from institutions like NABARD, and international sources.
This document contains an exam for a class 11th small business and source of finance course. It includes 1 mark, 4 mark, and 6 mark questions. The questions cover topics like types of share capital, returns on debentures, retained earnings, similarities between ADRs and public deposits, financing needs of businesses, micro small scale industries classification and limits, women-owned enterprises, challenges for small scale industries, and sources of finance for business expansion including debentures, equity, retained earnings, loans from institutions like NABARD, and international sources.
This document contains an exam for a class 11th small business and source of finance course. It includes 1 mark, 4 mark, and 6 mark questions. The questions cover topics like types of share capital, returns on debentures, retained earnings, similarities between ADRs and public deposits, financing needs of businesses, micro small scale industries classification and limits, women-owned enterprises, challenges for small scale industries, and sources of finance for business expansion including debentures, equity, retained earnings, loans from institutions like NABARD, and international sources.
Total marks : 50 Page | 1 Time allowed 1 hour 30 minutes 1 Mark Question Q1. What type of share capital is also called ‘’Risk Capital’’? Q2. Name the return given to debenture holders for using their funds? Q3. Name the one unique feature of ‘’Retained Earnings’’ which is not available in any any other source of finance? Q4. What is the similarity between ADR and Public Deposits? Q5. Which term is concerned with the acquisition and conservation of capital funds in meeting the financial needs of a business enterprise? Q6. Which type of Industry uses family labour and local available talent while running the business? Q7. A micro small scale industry has investment of Rs. 24 lakhs and engaged in manufacturing business. Now, it wants to increase its investment byRs. 4 Lakhs. what type of small Business will it become and what is the maximum investment limit in such cases? Q8. Which type of enterprise is owned, controlled and managed by a woman or a group of women holding share capital not less than 51%? Q9. Name any 2 areas where SSLs feel threatened from global enterprises. Q10. Name any 2 merits of SSLs in the export trade of India.
PREPARED BY SAURABH GUPTA
4 MARK QUESTIONS Q11. Write any FOUR differences between share and debentures. Q12. Write any four advantages of Retained Earnings. Page | 2 Q13. Write any four objectives of establishment of NABARD. Q14. Write any four problems of small business in India. 6 MARK QUESTIONS Q15. Preet food Industries set up food and beverages processing plant in the rural area of Haryana and opted for labour intensive technique due to easy availability of labour and to provide employment to local people. Board of director decided to invest 50 lakhs to acquire plant & machinery, Rs. 1 crore to buy land, Rs. 20 Lakhs to buy raw material and Rs. 20lakhs to maintain day to day expenses. (a) Name the Act of Industries which is applicable to the above industry. (b) which category of part (a) will the above industry came? (c) State the investment limit in this category. Q16. ‘’Ojas Auto Ltd. ‘’ is a very well known auto company in the industry having more of equity share capital than long term debt in its capital structure. It is willing to expand and establish new unit in the backward region and want to train the tribal women in skill Development to empower them. It has a huge amount of cash reserve of Rs. 1000 crores. (a) what is the status of capital structure of the above company. (b) According to you, which source of finance should be used by the company in establishing new units? Give any two reasons in support of your answer.
PREPARED BY SAURABH GUPTA
Q17 Board of Directors of ‘’Bio Pure water Ltd.’’ decides to set up its first unit in the hilly area of Himachal Pradesh Company requires Rs. 3 crores for it and Rs. 50 Lakhs for working capital. The company has earned marked15% of its profit for Educational and Health Page | 3 needs of its employees and their family members. (a) The above company comes under which category as per MSMEDAct 2006. (b) Write any one commercial reason for setting up of unit in the hilly region. (c) According to you, what are the options available to the company for meeting its long term and short term needs. Q18. ‘’Avika Ltd.’’ company, an IT giant company registered in India want to top the huge\ amount of resources for its growth and expansion from U.S.A.for long term needs. IT also needs money for a period of less then 3 years to meet its medium cum short term needs. The company is following the practice of educating and giving employment to under privileged youth.50% of its office electricity is generated through solar power. (a) Which two sources of finance should be used by the company to meet its requirement. (b)Write any two characteristics of each source.