Q2 D of 23 Page 145

Answer the following questions in two to three sentences each.

Why business concerns require short term finance?


Most businesses face time delays between their sales and the payments they make for their sales, so to compensate for the gap they take short term loans. These short term finances are used for day to day expenditures that includes activities like purchase of raw material, salaries, wages, marketing and administrative works.


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2 B

Answer the following questions in two to three sentences each.

Which are the two types of finance required by the business concerns ? Give examples.


 2 C

Answer the following questions in two to three sentences each.

Mention any four sources of short term credit required by business concerns?


 2

Answer the following questions in two to three sentences each.

What do you mean by long term finance?


 2 F

Answer the following questions in two to three sentences each.

Give the names of any three organizations in the field of ‘Mutual funds’