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Subjects

Business Studies

Borrowed Funds

In this Class 11 Business Studies topic from the chapter “Sources of Business Finance,” students learn how businesses raise borrowed funds to meet working capital needs, expand operations, or purchase assets. The topic explains common sources such as bank loans, debentures, public deposits, and trade credit, along with their key features, interest obligations, repayment terms, security requirements, and effect on business control. It also helps students understand why a firm compares cost, risk, flexibility, and repayment capacity before choosing debt finance.

Easy · Level 1 · 2 questions

TOPIC PRACTICE

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Up to 2 questions from this page. Select your focus, then start.

2 questions

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  1. Interest, tenure, and repayment ability
  2. Only the colour of the shop
  3. Forgetting customers’ names
  4. Never keeping a record of expenses
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  1. Repayment capacity and a clear purpose for using the funds
  2. Only whether the loan amount is large
  3. Keeping the loan decision secret from all advisers
  4. Spending the money without a budget

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