Class 12 Entrepreneurship: Resource Mobilization

Chapter 6: Resource Mobilization — understand how entrepreneurs raise money for their ventures, from their own equity to capital markets, angel investors and venture capital. CBSE Class 12 Entrepreneurship notes covering 2 topics: Sources of Finance and Capital Markets, and Angel Investors and Venture Capital.

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Multiple Choice

XYZ Ltd. is a manufacturer of coffee. The company planned to expand and was planning to buy a land in Karnataka. The chief financial officer suggested to offer the shares to a limited number of sophisticated investors. Out of the following, identify the method of raising the funds being suggested by the CFO.

A. Offer to employeesB. Right issueC. Public issueD. Private placement
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Multiple Choice

______ is an affluent individual who provides capital for a business start-up and early stage companies having a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity.

A. Primary MarketB. Capital MarketC. Angel InvestorD. Venture Capitalist
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Multiple Choice

Identify the place where transaction happens in shares or debentures subsequent to its primary offering:

A. Primary MarketB. Secondary MarketC. Capital MarketD. SEBI
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Multiple Choice

ABC Ltd. decided to raise funds by issuing shares. The finance department felt that the company should offer the shares to existing shareholders on a pro-rata basis. Out of the following, identify the method of raising the funds being suggested by the finance department.

A. Public IssueB. Right IssueC. Private PlacementD. Offer to employees
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Multiple Choice

Assertion (A): The Angel Investors were given the acronym FFF i.e. FRIENDS, FAMILY, AND FOOLS. Reason (R): Angel investors are high net-worth individuals who have the knowledge, expertise, and funds that help start-ups without due diligence.

A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)B. Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)C. Assertion (A) is true but Reason (R) is falseD. Assertion (A) is false but Reason (R) is true
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