Sources of Business Finance
Class 11 · Business Studies
4 ideas in Class 11 Business Studies, explained in plain words, with games and quizzes to practise.
Meaning and Types
Part of: Finance Basics and Shares
Finance funds business; owners funds vs borrowed; short, medium, long term matched to use.
Why it matters. Right source, right term.
Key words
- Business finance
- : Money arranged for starting and running a business.
- Owners funds
- : Funds from owners carrying risk but no fixed repayment.
- Borrowed funds
- : Borrowed money carrying fixed interest and repayment dates.
- Period matching
- : Short, medium and long uses matched with suitable sources.
Try it in two minutes
- Need how long?
- Owner or loan?
- Match the use.
Try at home. Match needs, sources.
Shares
Part of: Finance Basics and Shares
Shares split capital; equity bears risk, votes; preference gets fixed dividend first, less risk.
Why it matters. Ownership shared. Risk priced.
Key words
- Share capital
- : Small units of company capital sold to investors.
- Equity shares
- : Voting shares bearing full risk and full residual profit.
- Preference shares
- : Shares paid a fixed dividend before equity each year.
- Preference safety
- : Lower risk with fixed returns but no control for holders.
Try it in two minutes
- Need ownership funds?
- Pick equity, preference.
- Pay dividends.
Try at home. Compare share ads.
Debentures and Loans
Part of: Debt and Other Sources
Debentures borrow long-term at fixed interest; bank loans, public deposits add debt; security, burden vary.
Why it matters. Debt cheap, burden fixed.
Key words
- Debentures
- : Long-term borrowing at fixed interest with a charge on assets.
- Bank loans
- : Bank advances against security for medium needs.
- Public deposits
- : Unsecured company deposits from the public for short terms.
- Cost and security
- : Interest burden and asset security differing across debt options.
Try it in two minutes
- Need debt?
- Compare interest.
- Bear the burden.
Try at home. Compare loan rates.
Retained and Short Sources
Part of: Debt and Other Sources
Retained earnings plough back profits; trade credit, public deposits, commercial paper, customer advances fund short needs.
Why it matters. Free funds first. Quick gaps filled.
Key words
- Retained earnings
- : Profits ploughed back instead of being paid out.
- Trade credit
- : Supplier credit allowing delayed payment for purchases.
- Commercial paper
- : Large-denomination short notes that big firms sell directly.
- Customer advances
- : Customer advances funding production before delivery.
Try it in two minutes
- Keep some profits.
- Use supplier credit.
- Take quick deposits.
Try at home. Track saved profits.
What your child will practise
- Debentures and Loans: Space Puzzle (Clue Puzzle)
- Debentures and Loans: Space Quick Fire (Quick Fire)
- Meaning and Types: Ocean Puzzle (Clue Puzzle)
- Retained and Short Sources: Candy Quest (Flip and Match)
- Shares: Candy Quick Fire (Quick Fire)
- Quiz: Debentures and Loans (8 questions)
- Quiz: Meaning and Types (8 questions)
- Quiz: Retained and Short Sources (8 questions)
- Quiz: Shares (8 questions)