M.Com. (Semester IV) (CBCS) Examination Oct/Nov-2017
BUSINESS FINANCE
Day Date: Friday, 24-11-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
The additional shares offered to the existing equity holders are called
Equity shares Preference shares
Right shares Stocks
The headquarter of ICRA is at
New Delhi Madras
Mumbai Bangalore
carry interest as well as royalty on sales.
Income Note Loans Equity capital
Conditional loans Normal loans
The first leasing company was set up in India in
1948 1956
1973 1985
When underwriters form association for guaranteeing the subscription of the
issued capital it is known as
Syndicate Standby
Collective Firm
The symbol of (Double indicates safety.
Highest Adequate
Moderate Inadequate
In stage of financing venture capital, capital is rendered for
development of products and marketing also.
First round Seed money
Start up Fourth round
NASDAQ was founded in the year
1671 1771
1871 1971
An invitation to subscribe for the shares of the company is called
Statement Notice
Prospectus Advertisement
10) CRISIL was established in the year
1987 1997
1977 1887
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11) capital is an equity support to fund new concepts that involve
higher risk associated with high growth and high profit potentials.
Working Fixed
Seed Venture
12) The main objective of management is to maximize return and
minimize risk while making an investment.
Portfolio Human resource
Personnel Marketing
13) Financial Lease is agreement.
Short term Long term
Medium term None of these
14) Conversion of electronic holdings back into physical form is known as

Dematerialization Rematerialization
Capitalization None of these
Q.2 Write short notes. 14
Functions of SEBI
Functions of Portfolio Management
Q.3 Write answers in short. 14
What do you mean by Venture Capital? Discuss in brief the features of
Venture Capital.
What do you mean by Dematerialization? State the advantages of
dematerialization.
Q.4 Answer any one of the following. 14
What do you mean by Lease Finance? Discuss the advantages and
disadvantages of lease finance.
Explain the different methods of marketing of securities.
Q.5 Attempt any one of the following. 14
Define the term stock exchange. Discuss the function of stock exchange.
Explain the concept of Credit Rating. Describe the methodology of Credit
Rating.