Which financial instrument is crucial for funding small and medium enterprises (
Practice Questions
Q1
Which financial instrument is crucial for funding small and medium enterprises (SMEs) in India?
Equity shares
Debentures
Venture capital
Government bonds
Questions & Step-by-Step Solutions
Which financial instrument is crucial for funding small and medium enterprises (SMEs) in India?
Step 1: Understand what SMEs are - Small and Medium Enterprises are businesses that are smaller in size and revenue compared to large corporations.
Step 2: Recognize the need for funding - SMEs often need money to grow, innovate, and compete in the market.
Step 3: Learn about venture capital - Venture capital is a type of funding provided by investors to startups and small businesses with high growth potential.
Step 4: Connect venture capital to SMEs - Venture capital is crucial for SMEs because it gives them the financial support they need to develop their products and expand their operations.
Step 5: Acknowledge the impact - By receiving venture capital, SMEs can contribute to economic growth and job creation in India.
