Very Short Question Answer 1. Who is angel investor? An angel investor refers to a formal entrepreneur or professional who provides starting or growth capital in promising ventures, and helps also with advice and contacts. Angel investors usually operate alone or in very small groups. 2. Define the term equity financing. Equity financing refers to […]
Chapter 6: Legal Issues of Entrepreneurial Venture
Very Short Question Answer 1. Define the term intellectual property right. The right that protects intellectual properties like inventions, literary and artistic works, designs, and symbols, names and images is known mas intellectual property right. Intellectual property is protected in law through patents, copyright and trademark which enables people to earn recognition or financial benefit […]
Chapter 10: Mutual Fund
Very Short Question Answer 1. Why the price of the shares of an open-end fund cannot fall below its net asset value? The price of shares of an open-end fund cannot fall below its net assets value because an open-end fund always stands ready to redeem shares at net asset value. 2. Briefly describe the […]
Chapter 8: Fixed Income Securities
Very Short Question Answer 1. State the major features of fixed income securities and describe any one of them. Fixed income securities have various features such as an issuer, a maturity date, par value, and coupon. Coupon is the stated annual rate of interest that is paid on the par value of fixed income securities. […]
Chapter 5: Income Determination Model
Very Short Question Answer 1. Who developed IS-LM model? IS-LM model was developed by J.R. Hicks in 1937 A.D. 2. Define IS curve. IS curve is defined as the locus various combinations of rate of interest and level of income which gives product market equilibrium. 3. Define LM curve. LM curve is the locus of […]
Chapter 8: Indemnity and Guarantee
Very Short Question Answer 1. What is a contract of indemnity? Indemnity is a specific contract where a person promises or gives an assurance to another to save him from loss caused to him in the dealing between them in such circumstances as promised by the promisor. In fact, it is a promise of the […]
Chapter 4: Contract of Sales of Goods
Very Short Question Answer 1. What is meant by goods? The term goods refers all the movable properties other than the land and attached to the land. Therefore, growing crops is not goods but when harvested it amounts a goods. A living tree is not goods but it is severed from the land amounts to […]