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(b) Generated through loans from commercial banks
(c) Generated through issue of shares
(d) Generated within the business
Q.4 Short term funds are those funds which are required for a period not exceeding:
(a) Three years
(b) Two years
(c) One year
(d) Five years
Q.5 On the basis of period the different sources of funds can be categorized into :
(a) Two parts
(b) Three parts
(c) Four parts
(d) Five parts
1 mark questions
Q.1 What do you mean by Business Finance?
Q.2 What is the use of Working Capital?
Q.3 Name the categories of sources of funds on the basis of its generation.
Q.4 Give the examples of medium-term sources of finance.
3 to 4 marks questions.
Q.1 What factors influence the working capital need in a business? Write any three.
Q.2 Briefly explains any three features of borrowed fund.
5 to 6 mark questions.
Q.1 Briefly explains the classification of sources of business finance on the basis of time periods.
Q.2 Differentiate between owners fund and borrowed fund.
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