CBSE Class 11 Business Studies Chapter 8 : Sources of Business Finance Notes
CBSE Class 11 Chapter 8 notes on CHK help students comprehend the chapter correctly. Our subject matter specialists produced and curated the Business Studies Class 11 Chapter 8 notes in accordance with the most recent CBSE Class 11 Business Studies syllabus. CBSE Class 11 Business Studies Chapter 8 delves into the various avenues through which businesses can secure financial resources.
These revision notes discuss the nature and significance of business finance, the classification of funding sources, the period basis, finance, retained earnings, trade credit, factoring, lease financing, commercial paper (CP), public deposits, the issuance of shares, debentures, commercial banks, financial institutions, and international financing.
Key Takeaways
- Finance is required to start, run, or expand any business.
- There are numerous sources of funding. Each source has its own advantages and disadvantages.
- To make the most use of financial resources, businesses must select the appropriate source.
- It refers to the funds required to carry out commercial activity.
- It is critical to examine the organization’s financial needs and identify potential sources of funding.
CBSE Class 11 Business Studies Chapter 8 Notes PDF Download
The goal of the Chapter 8 Business Studies Notes PDF is to aid students in their exam preparation and help them ace it. Notes are available for students to download for free in PDF format.
Click here to Download CBSE Class 11 Business Studies Chapter 8 : Sources of Business Finance Notes
Download free – Class 11 Business Studies Chapter 10 NCERT Handwritten Solution
FAQ
1. What do you mean by business finance? And why do businesses need funds?
Every business or organisation requires finances to carry out its daily operations and crucial functions. Funds make it easier to handle cooperation. The phrase business finance refers to the daily activities of a corporation. A firm requires finances for various reasons, including:
- Funds are required to put up machinery, furniture, and conduct day-to-day operations.
- They contribute to the procurement of necessary equipment to increase product output.
2. Write the sources of long term finance and short term finance.
There are five types of sources that will help a business to raise funds for the long term. These are-
- Equity stocks or shares
- Debentures
- Retained earnings
- Preference shares
- Loans from different private and public financial institutions like banks
To raise funds for the short term, there are three types of sources. These are
- Commercial papers
- Credit cards
- Loans taken from banks for a short time
Conclusion
Each source of business finance has its own advantages and considerations. Equity financing provides ownership and profit-sharing opportunities, while borrowed funds need to be repaid with interest but do not dilute ownership. Specialized financing options like factoring and lease financing offer flexibility to meet specific needs.
Understanding these sources equips Class 11 students with the knowledge to make informed financial decisions, laying a strong foundation for future business endeavors. For detailed notes and revision materials, refer to resources like CHK Commerce Classes App or Website.
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