A company needs funds for extension and development purpose without increasing its share capital, it can borrow from the general public by issuing certificates for a fixed period of time and at a fixed rate of interest. Such a loan certificate is called a debenture.

Right shares are the shares which are issued by the company, with the aim of increasing the subscribed share capital of the company by further issue, if it is authorized by its Articles."The right shares are primarily issued to the existing equity shareholders through a letter of an issue, on pro rata basis.

Bonus share means to utilize the company's reserves and surpluses, issue of shares to existing share holder without taking any consideration is known as Bonus shares.

The person who envisages the idea is called a 'promoter'.

(i) Longterm finance 
(ii) Shortterm finance 

The digital India initiative has been launched to modernize the Indian Economy to make all government services available electronically. The initiative aims at transforming India into digitally empowered society and knowledge economy with universal access to goods and services.

(i) Startup India
(ii) Make in India
(ii) Digital India
(iv) Standup India

(i) Statutory License: Entrepreneur has to obtain Municipal License from the authority. concerned. Then the Entrepreneur has to register the unit with the Central and Sales Tax Department.
(ii) Power Connection: Entrepreneur has to make application to Assistant Divisional Engineer of State Electricity Board for power connection after paying Security Deposit and fulfilling the official formalities prescribed.

There are eight types of preference shares : 
(i) Cumulative Preference shares :
As the word indicates, all dividends are carried forward until specified, and paid out only at the end of the specified period.
(ii) Non-Cumulative Preference shares :
The opposite of cumulative, obviously. Dividends are paid out of profits for every year. There are no arrears carried over a time period to be paid at the end of the term
(iii) Redeemable Preference shares :
Such preference shares can be claimed after a fixed period or after giving due notice.
(iv) Non-Redeemable Preference shares :
Such shares cannot be redeemed during the lifetime of the company, but can only be obtained at the time of winding up (liquidation) of assets.
(v) Convertible Preference shares :
These shares can be converted into equity shares after a tinme period or as per theconditions laid doWn in the terms.
(vi) Non-convertible Prcference shares :
Non-convertible preference shares cannot be, at any time , converted into equity shares.
(vi) Participating Preference Shares :
Such shares have the right toparticipate in any additional profits, after paying the equity shareholders.
(viii) Non-Participating Preference shares :
Non-participating preference shares do not possess any right to participate in surplus profits or any surplus gained at the timeof liquidation of the company.

When shares are issued at a price above the face or nominal value, they are said to be issued at a premium. For example, a share having the face value of Rs. 10 is issued at Rs.12. Here, Rs.2 is the premium. The amount of share premium has to betransferred to an account called the 'Securities Premium Account! This account is capital in nature and can only be utilized for the purposes specified by the Act.999
(i) To write off preliminary expenses.
(ii) To write off the expenses of issue, or commission paid, or. discount allowed, on issue of shares or debentures of the company.
(iii) To provide for the payment of premium on the redemption of any redeemable preference shares or debentures of the company.
Thus, securities premium is not available for distribution of dividend.

(i) The definition of the term 'Share' under the Companies Act, 1956 (section 2(46)) includes stock.
(ii) A company can convert its shares into stock and vice versa by following the provisions of Table A (Article 36 - 39).
(iii) Stock is created from fully paid shares by passing an ordinary resolution in the general meeting.
(iv) The Article of Association of the company must permit this conversion.

(i) STEP - Support to Training and Employment Programme for Women
(ii) JAM  - Jan Dhan - Aadhaar - Mobile
(iii) SEED - Science for Equity Empowerment and Development

(i) Through the Startup India initiative, Government of India promotes entrepreneurship by mentoring, nurturing and facilitating startups throughout their life cycle.
(ii) Since its launch in January 2016, the initiative has successfully given a head start to numerous aspiring entrepreneurs.
(iii) A 'Fund of Funds' has been created to help startups gain access to funding.

(i) It is issued by the Company in the form of a certificate under the common seal.
(ii) It is movable property
(iii) Debenture holders are the creditors of the company
(iv) Debentures carry a fixed rate of interest.
(v) A debenture is redeemed after a fixed period of time.
(vi) Debentures may be either secured or unsecured.
(vii) Interest payable on a debenture is a charge against profit and hence it is a tax deductible expenditure.
(viii) Debenture holders do not enjoy any voting right.
(ix) Interest on debenture is payable even if there is a loss.

SI.No	Share Certificate	Share Warrant
1.	A share certificate is a written document	A Share Warrant is a negotiable instrument
2.	All the companies limited by shares irrespective of public or private	Only public limited companies have the right to issue share warrant
3.	Issued against fully or partly paid up share	Issued only against fulIy paid up share

Debenture is a document issued by the company for acknowledging the loan from the public.Debentures are generally classified into different categories on the basis of :
(i) Convertibility ofthe Instrument
(ii) Sccurity of the Instrument
(iii) Redemption ability, and
(iv) Registration of Instrument.
(i) On the basis of convertibility :
(a) Non-convertible debentures : These instruments cannot be converted into equity shares.
(b) Partly convertible debentures : A part of these instruments are converted into equity shares.
(c) Fully convertible debentures : These are fully convertible into equity shares.
(d) Optionally convertibility debentures : The investor can have the option to either convert the debentures at a price decided by the issuer or agreed upon at the time of issue.
(ii) On the basis of security :
(a) Secured debentures : These instruments are secured by a charge on the fixed assets of the issuer company.
(b) Unsecured debentures : These instruments are unsecured against the assets.
(iii) On the basis Redeemability :
(a) Redeemable debentures : It refers to the debentures which will be redeemed in future.
(b) Irredeemable debentures : It is a debenture, in which no specific time is specified by the companies to pay back the money.
(iv) On the basis of Registration, debentures may be classified as:
(a) Registered debentures : These are ssued in the name of a particular person, who registered by the company.
(b) Bearer debentures : These are issued to the bearer and are negotiable. Instruments, and are transterred by mere delivery.
 

SI.No	Debentures	Shares
1.	Debentures constitute a loan	Shares are part of the capital of a company
2.	Middle and lower level	Top level
3.	Debenture holder gets fixed rate of Interest which carries a priorities over dividend.	Shareholders gets dividends with a varying rate
4.	Debentures generally have a change on the assets of the company	Shares do not carry any such change
5.	Debentures can be issued at a discount without restrictions	Shares cannot be issued at a discount.

 

(i) The project reports need to be prepared according to the format prescribed in the loan application form of term lending institutions.
(ii) An entrepreneur can get the report prepared either by technical consultancy organisation or by auditors or by consultants or by development agencies.
(iii) This report should cover aspects like sources of finance, technical know-how, sources of labor and raw materials, market potential and profitability.
The project report should include the following
Technical Feasibility:
It should mention the following
(i) Description of product specification
(ii) Raw materials availability
(iii) Manufacturing process
(iv) Quality control measures
(v) Availability of water, power, transport ,and communication facilities.
Economic Viability:
It essentially involves compilation of demand for domestic and export market, installed capacity of machines, market share, revenue expected, and suitable price structure.
Financial Viability:
It should cover aspects like
(i) Non-recurring cost such as Land and Building, Plant and Machinery, etc.
(ii) Recurring expenses like wages, salaries, and overheads, etc.
(iii) Probable cost of production
(iv) Profit on expected sales.
Managerial Competency
1. Entrepreneur has to include the mechanism for managing the venture in the project report.
2. In the case of small sized ventures, the owner or partners may take care of managerial activities while a team of managerial personnel is to be brought in for manning various managerial positions across different levels of management in the case of corporate form of organisation.
3. He has to provide details of the organisational structure contemplated in the project report for implementing the venture.
Provisional Registration Certificate
1. Entrepreneur has to apply for Provisional Registration certificate. It will be issued to entrepreneur after the fulfilment of certain conditions for a period of one year subject to renewal of two periods of six months duration.
2. If an entrepreneur is not able to commence production beyond the extension period, further extension will not be granted
Permanent Registration Certificate
Once the venture has commenced production or when it is ready to commence production, it is eligible to get permanent registration cerificate.
Statutory Licence
1. Entrepreneur has to obtain Municipal License from the authority concerned.
2. Then the Entrepreneur has to register the unit with the Central and Sales Tax Department.
3. If a unit comes,within the provisions of Factories Act, he/she has to register it with Inspector of Factories or it has to register the unit under the Shops and Establishment Act.
Power Connection
Entrepreneur has to make application to Assistant Divisional Engineer of State Electricity Board for power connection after paying Security Deposit and fulfilling the official formalities prescribed.
Arrangement of Finance
1. Entrepreneur requires two types of finance namely long term and short term.
2. While long-term requirements are needed for acquiring fixed assets, short term requirement are meant for meeting working capital needs.

(i) Make in India:
(a) This scheme is designed to transform India into global design and manufacturing hub, the Make in India initiative was launched in September 2014.
(b) It came as a powerful call to India's citizens and business leaders, and an invitation to potential partners and investors around the world to centraliz information about opportunities in India's manufacturing sector
(ii) Atal Innovation Mission (AIM):
AIM is the Government ofIndia's endeavour to promote a culture of innovatíon and entreprerneurship,and itserves as a platform for promotion of world-class Innovatíon
Hubs, GrandChallenges, start-up businesses and other self-employment activities, particularly in technology driven areas.
(iii) Support to Training and Employment Programme for Women (STEP) : STEP was launched by the Government of India's Ministry of Women and Child Development to train women who have access to formal skill training facilities, especially in rural India.
(iv) Digital India :
(a) The Digital India initiative has been launched to moderníze the Indian economy to make all government services available electronically.
(b) The initiative aims at transforming India into a digitally-empowered society and knowledge economy with universal access to goods and services.
(v) Science for Equity Emnpowerment and
Development(SEED):
(a) SEED aims to provide opportunities tomotivated scientists and field level workers to undertake action-oriented, location specific projects for socio economic gain, particularly in rural areas.
(b) SEED emphasizes equity in development, so that the benefits oftechnology accrue to a vast section of the population, particularly the disadvantaged.