Working Capital Management Question: Download Questions PDF
Tell me what are Inter-corporate Deposits (ICDs)? What are their main characteristic features?
Answer:
Inter Corporate Deposits indicates unsecured short term funding raised by one company from another company. They are dependent on personal contacts. Following are their main characteristics:
1)They are for a very short period of time i.e 3 months or 6 months.
2)They are unsecured source for raising funds.
3)They are not regulated by any law.
4)It is a relationship based borrowing made by the company.
5)They involve high risk and high returns
6)Useful in solving temporary capital crisis.
1)They are for a very short period of time i.e 3 months or 6 months.
2)They are unsecured source for raising funds.
3)They are not regulated by any law.
4)It is a relationship based borrowing made by the company.
5)They involve high risk and high returns
6)Useful in solving temporary capital crisis.
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