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Questions and Answers
What are the two forms of owned capital mentioned in the text?
What are the two forms of owned capital mentioned in the text?
- Public deposits and bonds
- Equity shares and retained earnings (correct)
- Debentures and preference shares
- Trade credit and ADR / GDR
Which of the following is considered an external source of finance?
Which of the following is considered an external source of finance?
- Equity shares
- Trade credit
- Retained earnings
- Debentures (correct)
What is the difference between external and internal sources of finance?
What is the difference between external and internal sources of finance?
- External sources are always more reliable than internal sources.
- External sources involve raising capital from outsiders, while internal sources involve obtaining capital from within the organization. (correct)
- External sources involve trade credit, while internal sources involve equity shares.
- External sources are related to retained earnings, while internal sources are related to debentures.
Which type of capital is raised by the company with the help of owners (shareholders)?
Which type of capital is raised by the company with the help of owners (shareholders)?
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What form does owned capital take when shareholders purchase shares of the company and supply necessary capital?
What form does owned capital take when shareholders purchase shares of the company and supply necessary capital?
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