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HA code - 241507010123
CH-7: RESOURCE MOBILIZATION
TOPIC:RESOURCES (sources of finance-Equity and Preference)
ASSESSMENTS:
1. Define debentures as a source of finance.
2. Why is equity share capital called “Risk Capital”?
3. On the basis of duration, classify the sources of finance.
4. What are the major sources of capital of a Public Limited Company?
5. In terms of tax benefits, which one of the two-preference shares or debentures will be
preferred by the organization? Give reasons.
6. Differentiate between ‘equity shares’ and ‘preference shares’.
7. Differentiate between ‘owner’s funds’ and ‘borrowed funds’.

