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Sources of Business Finance — OCM STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceOCMSources of Business Finance3 Marks
Question
Write short note on 'Bond'.
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Answer

  • Bond is a debt of the company. 'Bond' is a capital borrowed from investors on condition of paying regular interest at fixed rate for fixed period.
  • Normally it is issued by Company, Municipal Corporation or Government to undertake long term specific project. 'Bond' bears the name of issuer. e.g. Sardar Sarovar Bond.

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