Skip to main content
Super TutorResources
Chapter 18 of 22
QuestionsNotesFlashcardsSummaryFormulasQuizConceptsSyllabusPlan
Revision Notes

Sources of Business Finance

ICSE · Class 12 · Business Studies

Quick revision notes for Sources of Business Finance — ICSE Class 12 Business Studies. Key concepts, formulas, and definitions for last-minute revision.

70 questions35 flashcards5 concepts

Interactive on Super Tutor

Studying Sources of Business Finance? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for revision notes and more.

Try Super Tutor — Free

1,000+ Class 12 students started this chapter today

Key Topics to Revise

1

1. Classification of Sources of Business Finance

  • Sources of business finance are broadly divided into owned funds and borrowed funds.
  • Owned funds include equity shares, preference shares, retained profits, global depository receipts, angel investors, venture capitalists, crowd funding, and peer-to-peer funding.
  • Borrowed funds include debentures and bonds, loans, public deposits, bills discounting, and trade credit.
2

2. Equity Shares and Preference Shares

  • Equity shares are ordinary shares with no preferential rights in dividend payment or repayment of capital.
  • Equity shares are issued before any other type of shares.
  • Dividend on equity shares is paid after preference share dividend and is not fixed.
3

3. Debentures and Bonds

  • A debenture is a document or certificate issued by a company under its seal as an acknowledgement of debt.
  • Debentures and bonds represent borrowed funds.
  • Interest on debentures is paid at a fixed rate and is payable every year even when the company suffers loss.
4

4. Retained Profits

  • Retained earnings or ploughing back of profits means retaining part of net profit year after year and reinvesting it in the business.
  • Retained profits are also called self financing.
  • This is an internal method of finance.

Get complete notes with diagrams and examples

Full Notes

Key Concepts

Equity shares are ordinary sharesPreference shares carry preferential rightsA debenture is a document underRetained profitsLoans are obtained from financial institutions

Frequently Asked Questions

What are the important topics in Sources of Business Finance for ICSE Class 12 Business Studies?
Sources of Business Finance covers several key topics that are frequently asked in ICSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Sources of Business Finance — ICSE Class 12 Business Studies?
Understand the core concepts first, then work through the 70 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Sources of Business Finance

All 22 chapters — ICSE Class 12 Business Studies Revision Notes

For serious students

Get the full Sources of Business Finance chapter — for free.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for ICSE Class 12 Business Studies.

Try Super Tutor Free
Try the full chapter — Free