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Factors affecting the short-term finance:

1. Nature of the business: The nature of the business affects the short-term financial requirements of a concern to a great extent. 

2. Growth and expansion of business: The growth and expansion of business also effects the short-term capital requirements. 

3. Scale of operations: The scale of operations affects the short-term capital requirements of a concert. A concern carrying on activities on a small scale needs less short-term capital.

4. Length of the operating Cycle: The length of the operating cycle, influencer the amount of short-term finance. 

5. Fluctuation in supplies: Fluctuations is supplies affect the short-term or working capital requirements of a firm. Operating efficiency: 

6. Credit policy: The credit policy of a firm affects its short-tern of working capital requirements. 

7. Credit facilities enjoyed from creditors: The credit facilities enjoyed by a firm from its creditors will’also affect the short working capital requirements of a firm.

8. Production policies: The production policies followed by a firm will also affect the working capital requirements. 

9. Rapidity of turnover: There is a high degree of connection between the rapidity of turnover and the amount of working capital requirements. 

10. Seasonal fluctuations in demand: Seasonal fluctuations in demand for products will affect the amount of short-term capital requirements of concern.

11. Taxes: Taxes imposed by the Government affect the working capital of a firm. Higher taxes are a strain on the working capital of the firm. 

12. Dividend policy: The dividend policy of a company affects its working capital requirements. 

13. Profit level: Profit level also affects the short-term or working capital requirements of concern. . 

14. Government regulations: Government regulations and restrictions affect the short-term working capital requirements of a firm. ‘ 

15. Price level changes: Price level changes also affect the short-term or working capital requirements of a firm.

The various sources of finance can be classified into two categories on the basis of ownership of finance or funds. They are: 

I. Owned Funds or Owners Fund

1. Equity shares 

2. Preference shares 

3. Re-investment of profits/Retained earning.

II. Borrowed Funds 

1. Debentures and Bonds. 

2. Loans from financial institutions 

3. Loans from Commercial Bank 

4. Public Deposits. 

5. Trade Credit

6. Bank Credit

• Equity shares,
• Preference shares and
• Retained earnings or ploughing back profits.

Owned Funds.or Owners Fund:

I. Equity shares: Equity shares are those which are not preference share.

Merits of equity share to the company, Equity shareholder:

1. Equity shares are very good and permanent source of long-term finance for a company. 

2. The holders of equity shares are the real owners of the company, and so, they have voting rights in the management of the company.

Demerits of equity share to the company, Equity shareholder:

1. It costs more to finance with equity shares than with the preference shares or debentures. 

2. The equity shareholders cannot be sure of earning regular and fixed divined.

II. Preference shares: Preference shares are shares which have preferential rights in respect of payment of dividend during the existence of the company, and also in respect of repayment or refund of share capital in the event of winding up of the company.

Merits of Preference shares to the company, Preference shareholder:

1. Preference share are an important source of long-term capital for the company, as the preference share capital is required to be returned only after a long-period of 10 years. 

2. Preference shareholders get a fixed rate of dividend on their shares.

Demerits of Preference shares to the company, Preference shareholder:

1. Issue of preference shares involves several legal formalities, and as a result, preference shares become costly. 

2. The preference shareholders cannot be quite sure of getting dividend on their shares every year.

III. Re-investment of profits: The process of retaining a portion of distributable profits and utilizing them in the business es called ploughing-back of profit, self-financing or internal financing.

Advantages of ploughing back to the company, shareholders:

1. Retained profits reduce the dependence of company on external borrowings. 

2. Retained earnings provide security to shareholders against business uncertainties.

Disadvantages of ploughing to the company, shareholders:

1. Ploughing-back of profits is possible only when there is stability in earnings

2. Retained profits may depress the prices of shares of the company temporarily.

Borrowed Funds:

1. Debentures and Bonds: In the words of Palmer, “Debenture signifies an instrument under seal evidencing a debt, the essence of it being the admission of indebtedness”.

2. Loans from financial institutions: In India, there are many specilaised financial institutions providing finance to business enterprises. Some of those specilaised financial institutions are the industrial Finance Corporation of India.

3. Loans from commercial Bank: Finance from commercial banks is a dependable source. Banks provide timely assistance, as funds are provided as and when needed by the borrowing firms.

4. Public Deposits: Public deposits refer to deposits that are raised by a business firm directly from the public.

Merits of public Deposits: 

• These deposits take care of short-term and medium-term financial requirements. 
• These deposits do not involve the creation of any charge on any asset of the borrower.

Demerits of public Deposits: 

• Collection of deposits from a large number of depositors is somewhat difficult.
• New companies generally find it difficult to borrow funds through public deposits.

5. Trade Credit: Trade credit refers to credit obtained from the suppliers of goods in the normal course of trade. In other words, it means the goods purchased from suppliers on credit. The duration of trade credit is, usually, 15 days to 90 days. It is granted without and security except the credit standing of the concern. The amount of trade credit that can be enjoyed by concern depends upon its credit-standing and the volume of business it carries on the supplier of goods.

There are three types of trade credit. They are:

1. Open accounts or accounts payable 

2. Notes payable 

3. Trade acceptances.

6. Bank Credit: Bank credit refers to credit, financial accommodation or advance taken from commercial banks. Bank credit is, generally, given for a period not exceeding one year. Bank credit is common to all types of business. The amount of bank credit depends upon the nature and size of the business, and the credit-standing of the concern. Bank credit may be unsecured or against guarantee or against hypothecation, pledge or mortgage of assets. An interest of 15% to 18% is, usually, charged on bank credit.

Bunk credit takes various forms. They are:

1. Short-term loan 

2. Overdraft 

3. Cash credit 

4. Discounting of bills of exchange 

5. Commercial letter of credit.

1. Debentures 

2. Loan from banks

Global Depository Receipts and American Depository Receipts

Global Depository Receipts (GDR) The depository receipts denominated in US dollars issued by depository bank to which the local currency shares of a company are delivered. GDR is a negotiable instrument and can be traded freely like any other security. In the Indian/eontext, a GDR is an instrument issued abroad by an Indian company to raise ftmds in some foreign currency and is listed and traded on a foreign stock exchange.

American Depository Receipts (ADR) The depository receipts issued by a company in the USA are known as American Depository Receipts. ADRs are bought and sold in American markets like regular stocks. ADRs similar to a GDR except that it can be issued only to American citizens and can be listed and traded on a stock exchange of USA.

Owned Funds or Owners Fund 

a. Equity shares 

b. Preference shares 

c. Re-investment of profits

There are some differences between ADRs and GDRs. They are:

• Preference shares redeemable before 20 years and
• Preference shares redeemable after 20 years.

Finance is the life-blood of business. The plans of a business concern would remain mere dreams unless adequate finance is available to convert the business plans into reality. In fact, finance is needed by a concern not only for expansion and growth but also for the very survival of the business. Finance is needed by a business concern at every stage.

The part of capital that a company raises by issuing shares is called share capital.

Floating charge:

• Floating charge is used by a company to borrow capital against debentures. It is a charge on the assets of the company. The charge keeps on floating as per the property which is to be covered.
• A specific characteristic of the floating charge is that the company can continue to use the assets even when the assets are mortgaged for debentures.

• The buyers of equity shares take a lot of risk on their heads by buying the shares.
• They know that the price of shares may go down in the market. They also know that they may or may not get dividends and also that the amount of dividends will never be fixed.
• In case of liquidation when company pays off all its debts and then if it has some money left only then it will give the capital back to equity share-holders.
• Owing to several risks that equity share-holders take and still remain stuck to the company as investors they are known as true owners of the company.

An equity share, commonly known as ordinary share represents the fractional or part ownership of the person i.e. share holder in the company. Equity shares have the right to obtain dividend (i.e. earn income) as per company’s laws and right to claim repayment , of share value after the company has made all its payments.

Financial institutions in India:

• Changes in science and technology led to rapid growth in the field of industry and commerce. As a result various business units established. These units needed capital for short-term as well as long-term. Traditional financers i.e. individual investors and commercial banks were unable to satisfy the huge demand of finance.
• Under such situations India saw the need of establishing specific financial institutions that could lend money to business units for their long-term capital requirements.
• When India started huge projects under its five year planning it laid strong emphasis on industrial development. It also put emphasis on establishing financial institutions for both private and public sector for long term financial needs.
• Government of India established few national level financial institutions as well as state finance corporations with an aim to help small, medium sized and even large scale business units obtain finance.

Some of the main financial institutions providing long-term finance are:

• IFCI (Industrial Finance Corporation of India)
• IDBI (Industrial Development Bank of India)
• ICICI (Industrial Credit and Investment Corporation of India)
• GSFC (Gujarat State Finance Corporation)
• GIIC (Gujarat Industrial Investment Corporation)

Advantages of ordinary shares:

• Share-holders/investors buying these shares are considered the true owners of the company.
• Share-holders can earn good dividends.
• Share-holders have right to attend general meetings and right to vote and elect directors.
• Prices of these shares fluctuate frequently and so one can make good money by trading them in the share market.
• Share-holders may also get bonus shares from the company.

Disadvantages of ordinary shares:

• Owners of ordinary shares are under high risk of price fluctuations of share in the market.
• In case of liquidation of the company they are the last to receive their capital invested in the shares.
• They may not get or may get very less dividend.
• Though they have voting rights but small investors may not be able to put their words in company’s management due to domination of directors and big investors. Share-holders may become victims of speculation.

Trade credit refers to credit obtained from the suppliers of goods in the normal course of trade. In other words, it means the goods purchased from suppliers on credit.

Functions of financial institutions:
1. Provide finance by buying shares:

• When the company is in the phase of incorporation, modernization or expansion it associates with financial institutions and asks them to buy its shares.
• This helps the companies to obtain necessary capital from these institutions. Companies may also ask such institutions to become their underwriter i.e. guarantors.

2. Provide finance by loan:

A company can mortgage its assets to take loan from these institutions. To further satisfy its financial needs companies can even mortgage personal properties and avail loan.

3. Help through direct payment for technological services:

At times a company may have to spend heavily in raising technological infrastructure or obtaining technological services. For example, developing and maintaining intranet of the company. Under such situations the financial institutions makes payment on behalf of the companies to the companies providing technology services.

4. Provide guarantee:

A financial institution may agree to become a guarantor of the company i.e. the institution will be liable to pay the company’s debts in case the company is unable to pay. This helps the company in gaining faith of investors and other financial institutions for obtaining finance.

5. Other services:

Financial institutions offer help in establishing a company, conducting market research, providing information about foreign markets, etc.

When a company having surplus funds deposits a part or whole in another company it is called inter-corporate deposit.

• Provides loan
• Provides finance by buying shares of company
• Provides guarantee, etc.

Public deposits:

When a company accepts deposits of about 6 months to 36 months from public to satisfy its short-term financial need such as working capital, the amount it receives is called public deposits.

The deposit is borrowed capital and so a debt of the company. The investors who invest their money as public deposits are called creditors of the company. The company pays them a specific interest quarterly half yearly or on maturity i.e. at the end of duration along with the principle amount as per decided terms. According to the provisions of companies Act, 2013 private companies excluding ‘ banking companies and non-banking finance companies cannot accept deposit from public.

Advantages of public deposits:

• Easy to obtain: It is quite easy for a well-established and profit making company to obtain finance.
• Less expensive finance option: Compared to other sources of finance, a company can easily obtain public deposits that too quickly and) with lesser expenses.
• Assets do not have a charge i.e. no need to mortgage assets: A company need not mortgage its assets to obtain public deposits. Hence, it can mortgage the assets to obtain finance from other sources in future.
• Interest is an expense: A company needs to pay interest on the public deposits. The interest paid is considered as an expenses and it is to be subtracted from profit while preparing accounts for income tax. Thus, a company needs to pay lesser income tax.
• Useful as working capital: A company can satisfy its short-term need of working capital through public deposits.

Limitations:

• Uncertainly: It is quite uncertain to obtain public deposits. The investors may not be interested in investing due to their personal preferences, behaviour, lack of spare money etc.
• Insecurity to investors: Company does not give under-writing like in case of shares and debentures and so investor consider it as risk and feels insecured. Hence, public deposits are also called unsecured debts.
• Fair weather friends: When the company is under financial crisis and if such news or rumors gets spread in the market then, depositors rush to company to withdraw their money even before the maturity date. This creates financial problems for the company and so public deposits are considered fair-weather friends.
• Difficult for new and weak companies: Investors do not have much faith in new and financially weak companies. Hence, they do not wish to risk their capital in such companies. So, such companies face difficulties in raising public deposits.

Public deposits refer to deposits that are raised by a business firm directly from the public.

• A company retains profits in the good times of business.
• A company can only retain profits if it does not have liability more than its assets. For a new company, a small company or a financially weak company making profits and maintaining its position against strong and established companies itself is a challenge.
• Moreover, such companies also need to invest more in modernization, expansion and innovation of their business so that they can have a strong foot in market.
• They also need to provide dividends to maintain the faith of investors and encourage them investing in their company. Hence, retaining profits is not possible for every company.

Investors feel insecure in trusting new and financially weak companies.

Correct option is (A) 6 months to 3 years

• Fair weather friend is a friend who is friendly or available only when it is advantageous to him.
• People invest money as public deposit in the companies when they get assured returns.
• Interest of these depositors is purely to earn by lending money to the company When the company is under financial crisis and if such news or rumors gets spread in the market then depositors rush to company to withdraw their money even before the maturity date. This creates financial problems for the company and so public deposits are considered fair weather friends.

When the company is under financial crisis and if such news or rumors gets spread in the market then depositors rush to company to withdraw their money even before the maturity date. This creates financial problems for the company and so…

Public Sector Organisations

Correct option is (d) Cash book

The answer is (A) The Cabinet

Correct option is D) Danzig

In 1959, President Dwight Eisenhower of the United States and Prime Minister Nikita Khrushchev of the Soviet Union met at Camp David in the United States.

1. Mule

2. Plasmid 

3. Dolly 

4. rDNA technology 

5. Vector 

6. Clones 

7. DNA fragments 

8. Endonuclease 

9. Bacillus thuringiensis. 

10. Vitamin A

Correct option is B) Britain

USSR and China signed a pact in 1950.

Contact metamorphism is directly related to the volcanic activity. When the hot molten magma comes to the surfaced of the Earth, it passes through joints and fissures in the rocks. The rocks coming in contact with the magma or lava get baked or burnt to form metamorphic rock. E.g. Marble from Limestone. Regional metamorphism is associated with Earth movements and processes of mountain building. In this the masses of Igneous and Sedimentary rocks are squeezed and buribd deep in the earth. E.g. Slate from Clay, Graphite from Coal.

(b) Hisardale

Marble, Diamond, Quartzite, Ruby, Emerald are the examples of metamorphic rock.

The word ‘Igneous’ is derived from the Latin word ‘ignis’ meaning fire. These rocks are primary rocks formed by the cooling, solidification and crystallization of magma. On the basis Silica content, igneous rocks are classified as

• Acid Igneous rocks: Granite 
• Basic igneous rocks: Gabbro.

(c) Dr M.S.Swaminathan

The rock cycle is a general model that describes how various geological processes create, modify, and influence rocks This model suggests that the origin of all rocks can be ultimately traced back to the solidification of molten magma. Magma consists of a partially melted mixture of elements and compounds commonly found in ‘rocks. Magma exists just beneath the solid crust of the Earth in an interior zone known as the mantle.

सही विकल्प है (ii) सिंघाड़ा

(क) मेढक पानी में श्वसन त्वचा द्वारा करता है।
(ख) नागफनी एक मरुस्थलीय वातावरण का पौधा है।
(ग) अल्प विकसित जड़े तथा वायु मृदूतक जलीय पौधों में पाया जाता है।
(घ) आलू एक भूमिका पौधा है।
(ङ) पक्षियों की हड्डियाँ खोखली होती हैं।

मेढक और सैलामैंडर

1. आकृति, आकार, रंग-रूप, संरचना तथा आवास सम्बन्धी लक्षणों में ऐसा परिवर्तन जो सजीव को विशेष पर्यावरण में सफलतापूर्वक जीवित रहने में सहायक होता है, अनुकूलन कहलाता है।
2. जैसा कि आप जानते हैं कि मरुस्थल में रहने वाले जन्तुओं को विशेष परिस्थितियों का सामना करना पड़ता है- जैसे पानी की कमी, तेज धूप तथा गरम बालू पर चलना।

उभयचर जीव जैसे-मेढक के पश्चपाद के पादजाल जल में तैरने तथा लंबी मांसपेशियाँ भूमि पर कूदने में सहायता करते हैं। इसके अतिरिक्त यह जल में त्वचा द्वारा तथा स्थल पर फेफड़े, द्वारा श्वसन करता है।