11th Commerce - Book Back Answers - Chapter 19 - English Medium Gudies

 

 

Plus One / 11th Commerce - Book Back Answers - Chapter 19 - English Medium

Tamil Nadu Board 11th Standard Commerce - Chapter 19: Book Back Answers and Solutions

    This post covers the book back answers and solutions for Chapter 19 – Commerce from the Tamil Nadu State Board 11th Standard Commerce textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

    We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

    By going through this material, you’ll gain a strong understanding of Commerce  Chapter 19 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

• 1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following 
• 2 Mark Questions: Answer briefly 
• 3, 4, and 5 Mark Questions: Answer in detail

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 11 students! Prepare well and aim for top scores. Thank you!

Chapter 19: SOURCES OF BUSINESS
FINANCE

I. Choose the correct answer

1. What is defined as the provision of money at the time when it is required?
a. finance
b. bank
c. cash management
d. none of these
Answer Key:
a. finance

2. Internal sources of capital are those that are __________________
a. generated through outsiders such as suppliers
b. generated through loans from commercial banks
c. generated through issue of shares
d. generated within the business
Answer Key:
d. generated within the business

3. Debenture holders are entitled to a fixed rate of ___________
a. Dividend
b. Profits
c. Interest
d. Ratios
Answer Key:
c. Interest

4. Public deposits are the deposits which are raised directly from ______
a. The public
b. The directors
c. The auditors
d. The owners
Answer Key:
a. The public

5. Equity shareholders are the __________ of a company
a. Creditors
b. Owners
c. Debtors
d. Employees
Answer Key:
b. Owners

 

II. Very Short answer questions

1. Write a short notes on Debentures.

• Debentures are an important instrument for raising long term debt capital.
• A company can raise funds through issue of debentures which bear a fixed rate of interest.

2. Name any two sources of funds classified under borrowed funds.

• Debentures
• Loan from banks
• public Deposits

3. Write any two examples of Post Office Savings Schemes.

• Post Office Savings Account,
• Recurring Deposit Account (RD),
• Fixed Deposit Account (FD/TD)

 

III. Short answer questions

1. Define Business Finance.
 “The finance function is the process of acquiring and utilizing funds by a business.”
                                                                               R.C. Osborn

2. What is Pledge?

• A customer transfers the possession of an article with the creditor and receives loan.
• Till the repayment of loan, the article is under the custody of the borrower.
• If the debtor fails to refund the loan.

3. Classify the sources of business finance on the basis of period.
The different sources of finance can be further grouped into three categories on the basis of period.

• Short term finance       
• Medium term finance  
• Long term finance

IV.Long answer questions

1. Explain the kinds of sources of short term finance. (any 5)
Loans and Advances

• Loan is a direct advance made in lump sum which is credited to a separate loan account in the name of borrower.

Discounting Bills of Exchange

• When goods are sold on credit, the suppliers generally draw bills of exchange upon customers who are required to accept it.

Trade Credit

• Trade credit is the credit extended by one trader to another for the purpose of purchasing goods and services.

Pledge

• A customer transfers the possession of an article with the creditor (banker) and receives loan.

Mortgage

• This is a type of loan taken from the bank by lodging with the banker title deeds of immovable assets like land and building.

2. Explain any five personal investment avenues.
Public Provident Fund (PPF)

• It is the safest long-term investment option for the investors in India. It is totally tax free.

Direct Equity or Share Purchase

• An individual can opt for investment in shares.

Real Estate Investment

• Real estate is one of the fastest growing sectors in India.

Investing in Metals

• Investment in metals like gold, silver and platinum is one of the oldest and evergreen investment products.

Bank Deposits

• Fixed deposits (FD) enable the investor to invest the money for a specific period