Capital markets are the most important source of raising finance for the entrepreneur as this market can :

(a) Increasing accountability to public shareholders

(b) Mobilise the financial resources on a nationwide scale

(c) Increasing costs in complying with higher level of reporting requirements

(d) Secure the required capital and know how to promote economic growth at a faster rate

(e) Relinquishing some control of the company following the public offering

Choose the most appropriate answer from the options given below:

(b), (d) only

Capital markets are the most important source of raising finance for the entrepreneurs as this market can:

a) Mobilize the financial resources on a nation-wide scale.

b) Secure the required foreign capital and know-how to promote economic growth at a faster rate.

c) Ensure the most effective allocation of the mobilized financial resources by directing the same either to such projects which are capable of the highest yield or to the underdeveloped priority areas where there is an urgent need to promote balanced and diversified industrialization.