Options for investing surplus funds



Shares and debentures: – the company invests its surplus funds in the outside corporate securities. i.e. shares and debentures of other companies. The company gets dividend and interest from these idle investments.


Government bonds: – The company can invest its surplus funds in the various government bonds which will earn them some returns. These bonds not only beneficial to the government but also to the corporate business people.


Intercorporate deposits: – The company can also invest its surplus funds with another company via deposits these sorts of deposits are called imtercorporate deposits, the company earns interest on these investments.


Expansion: – the company can also utilize its surplus funds by employing it in it the same business for further expansion of the business. Expansion of these businesses leads directly or indirectly through their surplus.

The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
1 Comment

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account