{"id":105593,"date":"2021-08-03T18:10:00","date_gmt":"2021-08-03T12:40:00","guid":{"rendered":"https:\/\/www.kopykitab.com\/blog\/?p=105593"},"modified":"2021-08-18T14:01:18","modified_gmt":"2021-08-18T08:31:18","slug":"ncert-solutions-for-class-11-business-studies-chapter-8","status":"publish","type":"post","link":"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/","title":{"rendered":"Class 11 Business Studies NCERT Solutions for Chapter 8 2021"},"content":{"rendered":"\n<p><img class=\"alignnone size-full wp-image-107403\" src=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs8.jpg\" alt=\"NCERT Solutions for Class 11 Business Studies Chapter 8\" width=\"1227\" height=\"690\" srcset=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs8.jpg 1227w, https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs8-768x432.jpg 768w\" sizes=\"(max-width: 1227px) 100vw, 1227px\" \/><\/p>\n<p><b>NCERT Solutions for Class 11 Business Studies Chapter 8: <\/b><span style=\"font-weight: 400;\">All NCERT answers for Class 11 Business Studies Chapter 8 can be found here. If you&#8217;re a Class 11 student studying Business Studies with the NCERT Textbook, you&#8217;ve probably come across Chapter 8: Business Finance Sources.\u00a0<\/span><\/p>\n<ul>\n<li><strong><a href=\"https:\/\/www.kopykitab.com\/blog\/cbse-class-11-business-studies-ncert-solutions\/\" target=\"_blank\" rel=\"noopener\">NCERT Solutions for Class 11 Business Studies<\/a><\/strong><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d3cb3277764\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d3cb3277764\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-visibility-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#ncert-solutions-for-class-11-business-studies-chapter-8\" title=\"NCERT Solutions for Class 11 Business Studies Chapter 8\">NCERT Solutions for Class 11 Business Studies Chapter 8<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#download-class-11-business-studies-ncert-solutions-for-chapter-8-free-pdf\" title=\"Download Class 11 Business Studies NCERT Solutions for Chapter 8 Free PDF\">Download Class 11 Business Studies NCERT Solutions for Chapter 8 Free PDF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#ncert-solutions-for-class-11-business-studies-chapter-8-important-concepts\" title=\"NCERT Solutions for Class 11 Business Studies Chapter 8 | Important Concepts\">NCERT Solutions for Class 11 Business Studies Chapter 8 | Important Concepts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#access-ncert-solutions-for-class-11-business-studies-chapter-8-%e2%80%93-sources-of-business-finance\" title=\"Access NCERT Solutions For Class 11 Business Studies Chapter 8 \u2013 Sources of Business Finance\">Access NCERT Solutions For Class 11 Business Studies Chapter 8 \u2013 Sources of Business Finance<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#short-questions-for-ncert-business-studies-solutions-class-11-chapter-8\" title=\"Short questions for NCERT Business Studies Solutions Class 11 Chapter 8\">Short questions for NCERT Business Studies Solutions Class 11 Chapter 8<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#1-what-is-business-finance-why-do-businesses-need-funds-explain\" title=\"1. What is business finance? Why do businesses need funds? Explain.\">1. What is business finance? Why do businesses need funds? Explain.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#2-list-sources-of-raising-long-term-and-short-term-finance\" title=\"2. List sources of raising long-term and short-term finance.\">2. List sources of raising long-term and short-term finance.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#3-what-is-the-difference-between-the-internal-and-external-sources-of-raising-funds-explain\" title=\"3. What is the difference between the internal and external sources of raising funds? Explain.\">3. What is the difference between the internal and external sources of raising funds? Explain.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#4-what-preferential-rights-are-enjoyed-by-preference-shareholders-explain\" title=\"4. What preferential rights are enjoyed by preference shareholders? Explain.\">4. What preferential rights are enjoyed by preference shareholders? Explain.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#5-name-any-three-special-financial-institutions-and-state-their-objectives\" title=\"5. Name any three special financial institutions and state their objectives.\">5. Name any three special financial institutions and state their objectives.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#6-what-is-the-difference-between-gdr-and-adr-explain\" title=\"6. What is the difference between GDR and ADR? Explain.\">6. What is the difference between GDR and ADR? Explain.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#long-questions-for-ncert-business-studies-solutions-class-11-chapter-8\" title=\"Long questions for NCERT Business Studies Solutions Class 11 Chapter 8\">Long questions for NCERT Business Studies Solutions Class 11 Chapter 8<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#1-explain-trade-credit-and-bank-credit-as-sources-of-short-term-finance-for-business-enterprises\" title=\"1. Explain trade credit and bank credit as sources of short-term finance for business enterprises.\">1. Explain trade credit and bank credit as sources of short-term finance for business enterprises.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#2-discuss-the-sources-from-which-a-large-industrial-enterprise-can-raise-capital-for-financing-modernization-and-expansion\" title=\"2. Discuss the sources from which a large industrial enterprise can raise capital for financing modernization and expansion.\">2. Discuss the sources from which a large industrial enterprise can raise capital for financing modernization and expansion.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#3-what-advantages-does-issue-of-debentures-provide-over-the-issue-of-equity-shares\" title=\"3. What advantages does issue of debentures provide over the issue of equity shares?\">3. What advantages does issue of debentures provide over the issue of equity shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#4-state-the-merits-and-demerits-of-public-deposits-and-retained-earnings-as-methods-of-business-finance\" title=\"4. State the merits and demerits of public deposits and retained earnings as methods of business finance.\">4. State the merits and demerits of public deposits and retained earnings as methods of business finance.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#5-discuss-the-financial-instruments-used-in-international-financing\" title=\"5. Discuss the financial instruments used in international financing.\">5. Discuss the financial instruments used in international financing.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#6-what-is-a-commercial-paper-what-are-its-advantages-and-limitations\" title=\"6. What is a commercial paper? What are its advantages and limitations?\">6. What is a commercial paper? What are its advantages and limitations?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#access-other-chapters-ncert-solutions-of-class-11-business-studies-%e2%80%93\" title=\"Access Other Chapters NCERT Solutions of Class 11 Business Studies \u2013\u00a0\">Access Other Chapters NCERT Solutions of Class 11 Business Studies \u2013\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#faqs-on-class-11-business-studies-ncert-solutions-for-chapter-8\" title=\"FAQs on Class 11 Business Studies NCERT Solutions for Chapter 8\">FAQs on Class 11 Business Studies NCERT Solutions for Chapter 8<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#is-it-possible-to-view-chapter-8-while-offline\" title=\"Is it possible to view Chapter 8 while offline?\">Is it possible to view Chapter 8 while offline?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#what-is-the-definition-of-business-finance-what-is-the-necessity-for-finances-in-a-business-explain\" title=\"What is the definition of business finance? What is the necessity for finances in a business? Explain.\">What is the definition of business finance? What is the necessity for finances in a business? Explain.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#what-is-the-distinction-between-the-gdr-and-the-adr-explain\" title=\"What is the distinction between the GDR and the ADR? Explain.\">What is the distinction between the GDR and the ADR? Explain.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#where-can-we-get-the-pdf-for-ncert-solutions-for-class-11-business-studies-chapter-8\" title=\"Where can we get the PDF for NCERT Solutions for Class 11 Business Studies Chapter 8?\">Where can we get the PDF for NCERT Solutions for Class 11 Business Studies Chapter 8?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/#what-does-it-cost-to-obtain-ncert-solutions-for-class-11-business-studies-chapter-8-pdf\" title=\"What does it cost to obtain NCERT Solutions for Class 11 Business Studies Chapter 8 PDF?\">What does it cost to obtain NCERT Solutions for Class 11 Business Studies Chapter 8 PDF?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"ncert-solutions-for-class-11-business-studies-chapter-8\"><\/span><b>NCERT Solutions for Class 11 Business Studies Chapter 8<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs8.pdf\" target=\"_blank\" rel=\"noopener\" data-wplink-edit=\"true\">NCERT Solutions for Class 11 Business Studies Chapter 8<\/a><\/p>\n<div id=\"example1\" style=\"text-align: justify;\">\u00a0<\/div>\n<p style=\"text-align: justify;\"><style>\n.pdfobject-container { height: 500px;}<br \/>\n.pdfobject { border: 1px solid #666; }<br \/>\n<\/style><\/p>\n<p style=\"text-align: justify;\"><script src=\"https:\/\/www.kopykitab.com\/_utility\/js\/pdfobject.min.js\"><\/script><br \/><script>PDFObject.embed(\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs8.pdf\", \"#example1\");<\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"download-class-11-business-studies-ncert-solutions-for-chapter-8-free-pdf\"><\/span><b>Download <\/b><strong>Class 11 Business Studies NCERT Solutions for Chapter 8 Free PDF<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: center;\"><a style=\"width: auto; padding: 18px; cursor: pointer; font-weight: bold; border-radius: 40px; color: #ffffff; background: #ff4500;\" href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/bs8.pdf\" target=\"_blank\" rel=\"noopener\">Click Here<\/a><\/p>\n<p><span style=\"font-weight: 400;\">Students can understand the concepts without any hassle. To understand the NCERT Solutions of <a href=\"https:\/\/www.kopykitab.com\/Class-11-Business-Studies\" target=\"_blank\" rel=\"noopener\">Class 11 Business Studies<\/a> and excel in their Business skills, you can download its PDF. The PDF is available both online and offline.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ncert-solutions-for-class-11-business-studies-chapter-8-important-concepts\"><\/span><b>NCERT Solutions for Class 11 Business Studies Chapter 8 <\/b><b>| Important Concepts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Introduction<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The definition, nature, and importance of business finance<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sources of funding are categorized.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">on a yearly basis<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Basis of generation source<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Financial resources<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Earnings retained<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Credit for trade<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Factoring<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Financing for leases<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Deposits made by the general public<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Tenants<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">NCERT answers for Class 11 Business Studies Chapter 8 has a large number of instructive examples, which aids students in understanding and learning. The examples listed above are from the CBSE Class 11 curriculum.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"access-ncert-solutions-for-class-11-business-studies-chapter-8-%e2%80%93-sources-of-business-finance\"><\/span>Access NCERT Solutions For Class 11 Business Studies Chapter 8 \u2013 Sources of Business Finance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"short-questions-for-ncert-business-studies-solutions-class-11-chapter-8\"><\/span><strong>Short questions for NCERT Business Studies Solutions Class 11 Chapter 8<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"1-what-is-business-finance-why-do-businesses-need-funds-explain\"><\/span><strong>1. What is business finance? Why do businesses need funds? Explain.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Funds required to carry the load of the organisation and its daily operations is called Business finance. Businesses need funds due to following reasons:<\/p>\n<p>1. An organisation needs machinery, building, furniture etc. to setup operations and for purchasing all these items funds are necessary, it is called fixed capital requirement, the amount of varies with type of business.<\/p>\n<p>2. To run day to day operations like purchasing raw materials require regular funds, also called as working capital requirement.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-list-sources-of-raising-long-term-and-short-term-finance\"><\/span><strong>2. List sources of raising long-term and short-term finance.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Long term finance sources are:<\/p>\n<p>1. Equity Shares<\/p>\n<p>2. Debentures<\/p>\n<p>3. Retained earnings<\/p>\n<p>4. Preference shares<\/p>\n<p>5. Loans from banks and other financial institutions<\/p>\n<p>Short term finance sources are:<\/p>\n<p>1. Commercial papers<\/p>\n<p>2. Trade credit<\/p>\n<p>3. Short term loans from banks<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-what-is-the-difference-between-the-internal-and-external-sources-of-raising-funds-explain\"><\/span><strong>3. What is the difference between the internal and external sources of raising funds? Explain.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<table>\n<tbody>\n<tr>\n<td><strong>Basis of Comparison<\/strong><\/td>\n<td><strong>Internal Source<\/strong><\/td>\n<td><strong>External Source<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Source<\/td>\n<td>Funds generated from within the business<\/td>\n<td>Funds generated from outside source such as suppliers, investors.<\/td>\n<\/tr>\n<tr>\n<td>Need Fulfilment<\/td>\n<td>Able to fulfil limited needs<\/td>\n<td>Can gather many links for raising capital<\/td>\n<\/tr>\n<tr>\n<td>Security<\/td>\n<td>No security required<\/td>\n<td>Security required in form of mortgaging assets<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"4-what-preferential-rights-are-enjoyed-by-preference-shareholders-explain\"><\/span><strong>4. What preferential rights are enjoyed by preference shareholders? Explain.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Following rights are enjoyed:<\/p>\n<p>1. At the time of dividend declaration be the first to receive a fixed rate of dividend from profits.<\/p>\n<p>2. In case of liquidation, the preference to receive capital after creditor claims are settled.<\/p>\n<p>3. In case of company dissolution, preference share capital will be refunded before equity share capital.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-name-any-three-special-financial-institutions-and-state-their-objectives\"><\/span><strong>5. Name any three special financial institutions and state their objectives.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>1. Unit Trust of India or UTI: Established in 1964 from the Unit Trust of India Act, 1963. The objective of setting up UTI was to mobilize savings and making the funds that are available towards investment in profitable ventures.<\/p>\n<p>2. Life Insurance Corporation of India or LIC: It was setup in 1956, under the LIC Act, 1956 making all existing insurance companies nationalized. The objective is to encourage savings as premium towards insurance and investing it in form of loans to industrial units.<\/p>\n<p>3. Industrial Finance Corporation of India or IFCI was established in the year 1948, under the Industrial Finance Corporation Act, 1948. Its objective was to provide assistance in balanced regional development and encourage entrepreneurs to explore rising sectors of economy. Also contributing towards management education development.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6-what-is-the-difference-between-gdr-and-adr-explain\"><\/span><strong>6. What is the difference between GDR and ADR? Explain.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Global Depository Receipts or GDR: Receipts that are shared by depository banks against company shares. GDR are denoted in US dollars and can be easily converted into shares at any time. They can be listed and traded on all stock exchanges over the world.<\/p>\n<p>American Depository Receipts or ADR: These receipts are issued by companies which are US based, and like other securities get traded in the market. The only factor is that the trading is restricted to US Securities market and these receipts are only sold to US citizens.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"long-questions-for-ncert-business-studies-solutions-class-11-chapter-8\"><\/span><strong>Long questions for NCERT Business Studies Solutions Class 11 Chapter 8<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"1-explain-trade-credit-and-bank-credit-as-sources-of-short-term-finance-for-business-enterprises\"><\/span><strong>1. Explain trade credit and bank credit as sources of short-term finance for business enterprises.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Trade credit: The credit offered by one supplier to a purchaser of goods is called as trade credit. This helps in promoting sale of goods and services, as the purchaser is not required to make payment at that time in the form of cash. Such credit is granted only to creditworthy customers. There are factors that influence the volume and period of the credit and they are:<\/p>\n<p>1. Financial position of seller<\/p>\n<p>2. Past payment record<\/p>\n<p>3. Volume of purchases<\/p>\n<p><strong>Benefits of trade credit:<\/strong><\/p>\n<p>1. It helps a company in accumulating inventories for increasing sales in future.<\/p>\n<p>2. Trade creditors do not have any rights over company assets. Therefore assets can be mortgaged for raising money from other sources.<\/p>\n<p><strong>Bank credit:\u00a0<\/strong>Commercial banks provide source of funds and these funds are used for different purposes and time periods in the form of overdrafts, cash credits, discounting bills. These loan needs to be paid in lump sum or by paying in instalments.<\/p>\n<p><strong>Benefits of bank credit<\/strong><\/p>\n<p>1. There is secrecy in providing information about their customers.<\/p>\n<p>2. Provides flexibility in terms of loan repayment.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-discuss-the-sources-from-which-a-large-industrial-enterprise-can-raise-capital-for-financing-modernization-and-expansion\"><\/span><b>2. Discuss the sources from which a large industrial enterprise can raise capital for financing modernization and expansion.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Following sources of capital are suitable for raising capital for expansion:<\/p>\n<p>1. Equity Shares: These are the shares that are part of owner\u2019s capital. The persons holding such shares are known as equity shareholders and they enjoy decision making capacity in management, they also get high returns when the profits of the business get higher.<\/p>\n<p>2. Preference Shares: This is a type of share that gives shareholders a preferential right with regard to repayment of capital and earning payments after a period of time. The payment to preference shareholders is done as per the Section 80 of the Companies Act, 1956<\/p>\n<p>3. Loans: A business can borrow funds from bank and similar financial institutions for a fixed time at a fixed rate\/variable rate, they have to pay interest.<\/p>\n<p>4. Retained earnings: These are parts of profit that are kept for use in future. It is called as retained earnings.<\/p>\n<p>5. Debentures: These are instruments that are helpful in raising long term capital. Debentures are like loans having a fixed rate of return.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-what-advantages-does-issue-of-debentures-provide-over-the-issue-of-equity-shares\"><\/span><strong>3. What advantages does issue of debentures provide over the issue of equity shares?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Debentures provide the following advantages over equity shares:<\/p>\n<p>1. Issuing equity shares makes the shareholders own the company, and they become entitled to voting rights while debenture holders do not have any rights in the organisation. They get a fixed amount in form of payment. Debentures thus do not contribute towards dilution of ownership of company and can be issued without any risk.<\/p>\n<p>2. For issuing shares, the company has to bear huge costs, also dividends payment is not tax deductible. For interest paid to debenture company receives tax deductions, so issuing debenture is beneficial.<\/p>\n<p>3. Debentures are having a fixed rate of return. So if no profit is also earned, then also the company needs to pay the dividend, which is at a fixed rate, on the other hand, a company issuing equity shares and making profit needs to share more with the shareholders, which varies with the profit earned. Thus, it is better to issue debentures.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-state-the-merits-and-demerits-of-public-deposits-and-retained-earnings-as-methods-of-business-finance\"><\/span><strong>4. State the merits and demerits of public deposits and retained earnings as methods of business finance.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Public deposits are raised by organisations directly from the public and which helps them to finance short and medium term requirements. These deposits provide higher return than bank deposits. Anyone interested in doing investment needs to submit a prescribed form along with the amount to be deposited. A deposit receipt will be issued as acknowledgement.<\/p>\n<p>Merits:<\/p>\n<p>1. Requires very few regulations.<\/p>\n<p>2. Fund raising from public is less costly than borrowing loans from banks.<\/p>\n<p>3. As depositors do not have any voting rights, ownership is not diluted.<\/p>\n<p>Demerits:<\/p>\n<p>1. Amount of money raised from public is limited as it depends on willingness and availability of funds.<\/p>\n<p>2. New companies find it difficult to raise fund as trust is less among people<\/p>\n<p>3. A firm with high capital requirement, this will not be a good option.<\/p>\n<p>Retained Earnings: Firms keep a part of profit before distributing the dividends to the shareholders, such profits are kept for future use in business and is called as retained earnings.<\/p>\n<p>Merits:<\/p>\n<p>1. Funds are raised from internal source and therefore do not involve any cost.<\/p>\n<p>2. As retained earnings increase, the price in equity shares also increase.<\/p>\n<p>3. As these are profits which are surplus, it reduces chances of unexpected loss.<\/p>\n<p>Demerits:<\/p>\n<p>1. Business profits can fluctuate so retained earnings are uncertain.<\/p>\n<p>2. Investing large amount of profit into business can make shareholders unhappy<\/p>\n<p>3. Funds are misused sometimes as firms do not cash in on the opportunity at the right time.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-discuss-the-financial-instruments-used-in-international-financing\"><\/span><strong>5. Discuss the financial instruments used in international financing.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>These three financial instruments are mainly used in international financing:<\/p>\n<p>1. American Depository Receipts or ADR: These receipts are issued by companies which are US based, and like other securities get traded in the market. The only factor is that the trading is restricted to US Securities market and these receipts are only sold to US citizens.<\/p>\n<p>2. Foreign Currency Convertible Bonds or FCCB: These are debt securities which are qualified to be converted into depository receipts and equity shares after a certain time period. The terms of conversion and price are specified in advance and returns on such securities are fixed prior which is lower than returns on securities that are non-convertible.<\/p>\n<p>3. Global Depository Receipts or GDR: Receipts that are shared by depository banks against company shares. GDR are denoted in US dollars and can be easily converted into shares at any time. They can be listed and traded on all stock exchanges over the world.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6-what-is-a-commercial-paper-what-are-its-advantages-and-limitations\"><\/span><strong>6. What is a commercial paper? What are its advantages and limitations?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One type of credit instrument that is used by creditworthy firms to raise short term finance for their business is called as Commercial Paper. It is a type of unsecured promissory note with a maturity ranging from 90 to 364 days. It is issued to insurance companies, banks, business firms and pension funds, it is regulated by RBI (Reserve Bank of India).<\/p>\n<p>Advantages:<\/p>\n<p>1. Lower cost than securing bank loans from commercial banks.<\/p>\n<p>2. A highly liquid asset that can be transferred to anyone.<\/p>\n<p>3. Companies earn good returns by investing the surplus earnings<\/p>\n<p>4. Provides a continuous source of finance for firms<\/p>\n<p>Limitations:<\/p>\n<p>1. Firms that have a strong market hold can only raise money<\/p>\n<p>2. Time period cannot be extended in case funds are not available<\/p>\n<h2><span class=\"ez-toc-section\" id=\"access-other-chapters-ncert-solutions-of-class-11-business-studies-%e2%80%93\"><\/span><b>Access Other Chapters NCERT Solutions of Class 11 Business Studies \u2013\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You can download the PDF of NCERT Solutions Class 11 Business studies for other Chapters:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-1\/\"><span style=\"font-weight: 400;\">Chapter 1<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-2\/\"><span style=\"font-weight: 400;\">Chapter 2<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-3\/\"><span style=\"font-weight: 400;\">Chapter 3<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-4\/\"><span style=\"font-weight: 400;\">Chapter 4<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-5\/\"><span style=\"font-weight: 400;\">Chapter 5<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-6\/\"><span style=\"font-weight: 400;\">Chapter 6<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-7\/\"><span style=\"font-weight: 400;\">Chapter 7<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-9\/\"><span style=\"font-weight: 400;\">Chapter 9<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-10\/\"><span style=\"font-weight: 400;\">Chapter 10<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-11\/\"><span style=\"font-weight: 400;\">Chapter 11<\/span><\/a><\/li>\n<\/ul>\n<p><b>All the best to the students appearing for the Class 11th board exam. Here is the detailed blog of NCERT Solutions Class 11 Business Studies Chapter 8. For further queries regarding the <a href=\"https:\/\/www.cbse.gov.in\/\" target=\"_blank\" rel=\"noopener\">CBSE<\/a> Class 11th exam, you can ask in the comment box.\u00a0<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"faqs-on-class-11-business-studies-ncert-solutions-for-chapter-8\"><\/span><b>FAQs on <\/b><strong>Class 11 Business Studies NCERT Solutions for Chapter 8<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1626437072067\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"is-it-possible-to-view-chapter-8-while-offline\"><\/span><strong>Is it possible to view Chapter 8 while offline?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, you may view Chapter 8 while you&#8217;re not connected to the internet.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1626437088669\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-is-the-definition-of-business-finance-what-is-the-necessity-for-finances-in-a-business-explain\"><\/span><strong>What is the definition of business finance? What is the necessity for finances in a business? Explain.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Business finance refers to the funds necessary to bear the organization&#8217;s load and run its everyday activities. Businesses require cash for the reasons listed below:<br \/>1. An organisation needs machinery, a structure, and furnishings to begin operations, and money is required to purchase all of these goods. This is referred to as fixed capital requirement, and the amount varies depending on the type of business.<br \/>2. Day-to-day activities, such as acquiring raw materials, need recurring money, often known as working capital.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1626437104330\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-is-the-distinction-between-the-gdr-and-the-adr-explain\"><\/span><strong>What is the distinction between the GDR and the ADR? Explain.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>GDRs (Global Depositary Receipts): Receipts issued by depository banks in exchange for firm shares. GDRs are denominated in US dollars and maybe quickly converted into shares. They can be listed and traded on any of the world&#8217;s stock markets.<br \/>ADRs (American Depository Receipts): These receipts are issued by US-based corporations and, like other securities, are traded on the open market. The main difference is that trading is limited to the US Securities market, and these receipts may only be purchased by US persons.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1626437329793\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"where-can-we-get-the-pdf-for-ncert-solutions-for-class-11-business-studies-chapter-8\"><\/span><strong>Where can we get the PDF for NCERT Solutions for Class 11 Business Studies Chapter 8?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It&#8217;s available for download from the above blog.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1626437343997\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-does-it-cost-to-obtain-ncert-solutions-for-class-11-business-studies-chapter-8-pdf\"><\/span><strong>What does it cost to obtain NCERT Solutions for Class 11 Business Studies Chapter 8 PDF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It is completely free.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>NCERT Solutions for Class 11 Business Studies Chapter 8: All NCERT answers for Class 11 Business Studies Chapter 8 can be found here. If you&#8217;re a Class 11 student studying Business Studies with the NCERT Textbook, you&#8217;ve probably come across Chapter 8: Business Finance Sources.\u00a0 NCERT Solutions for Class 11 Business Studies NCERT Solutions for &#8230; <a title=\"Class 11 Business Studies NCERT Solutions for Chapter 8 2021\" class=\"read-more\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-business-studies-chapter-8\/\" aria-label=\"More on Class 11 Business Studies NCERT Solutions for Chapter 8 2021\">Read more<\/a><\/p>\n","protected":false},"author":249,"featured_media":107403,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[2934],"tags":[76318,3570,76237,76325],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/105593"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/249"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=105593"}],"version-history":[{"count":4,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/105593\/revisions"}],"predecessor-version":[{"id":113774,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/105593\/revisions\/113774"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media\/107403"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=105593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=105593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=105593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}