NCERT Solutions for Class 12 Entrepreneurship Resource Mobilization
NCERT Solutions for Class 12 Entrepreneurship Resource Mobilization
NCERT Solutions for Class 12 Entrepreneurship Resource Mobilization is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.
NCERT TEXTBOOK QUESTIONS SOLVED
1. What do you understand by finance?Ans. 'Finance' refers to funds or monetary resources needed by individuals, business houses and the government.
2. Give the significance of finance in an enterprise.Ans. The significance of finance in enterprise is elucidated like a lubricant to the process of production.
3. Name the most important prerequisite to start an enterprise.Ans. Finance is the most important prerequisite to start an enterprise.
4. State the most important factors for the survival of any business enterprise.Ans. Financing, 'production', 'marketing' are deemed to be the most important factors for any business survival. Financing is considered to be the first because nothing can be done without money.
5. State how sources can broadly be classified into two major categories.Ans. We know that these sources could broadly be classified into two major categories:
6. What do you understand by internal sources of finance?Ans. Internal sources of finance is referred to as owner’s own money. It is also known as owner’s equity. Particularly in the case of small entrepreneurs the owner’s money is very small.
7. How will you differentiate between financial market with other market? Give one difference.Ans. Financial market is a market in which people and entities can trade financial securities (stocks and bonds), commodities (including precious metals or agricultural goods), and others like crude oil etc. at prices that reflect supply and demand. Market refers to the aggregate of possible buyers and sellers of a certain good or service and the transactions between them.
Ans. The only reward the IPO investors seek is an appreciation of their investment and possibly dividends.
9. Identify the method of raising additional finance from existing shareholders by offering securities to them on pro-rata basis.Ans. Rights issue is a method of raising additional finance from existing shareholders by offering securities to them on pro-rata basis.
10. What do you understand by pro-rata allotment of securities?Ans. It is used to describe a proportionate allocation. It is a method of assigning shareholders a right to a certain number of shares in proportion to the shares they are holding.
11. What is Right Issue?Ans. Rights issue is a method of raising additional finance from existing shareholders by offering securities to them on pro-rata basis i.e. giving them a right to a certain number of shares in proportion to the shares they are holding
12. When the right issue are proposed to the existing shareholders and if they are not ready to subscribe what is the next step taken by an entrepreneur?Ans. When rights issues are proposed to the existing shareholders and in case they are not willing to subscribe, they can renounce the same in favour of another person.
13. Why right issue method of issuing securities is considered to be inexpensive?Ans. The right issuing securities is considered to be inexpensive as no intermediaries are required like any brokers, agents, underwriters, prospectus or enlistment, etc.
14. What do you understand by private placement?Ans. Private placement means the direct sale by a company of its securities to a limited number of sophisticated investors
15. What is meant by stock options or offering shares to the employees?Ans. A stock option is granted to specified employees of a company. ESOs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price.