MCQ Questions for Class 11 Business Studies: Ch 8 Sources of Business Finance

MCQ Questions for Class 11 Business Studies: Ch 8 Sources of Business Finance


1. Public deposits are the deposits that are raised directly from
(a) The public
(b) The owners
(c) The directors
(d) The auditors
► (a) The public

2. Which of the following is a commercial bank?
(a) Punjab National Bank
(b) Canara bank
(c) State Bank of India
(d) All of the above
► (d) All of the above

3. State Industrial Development Corporations were established by _______
(a) Ministry of Finance
(b) Different States
(c) Central Government
(d) None of the above
► (b) Different States

4. Industrial Finance Corporation of India (IFCI) was established in _______
(a) July, 1948
(b) July, 2001
(c) July, 1956
(d) July, 1991
► (a) July, 1948

5. _________ is an example of short term finance
(a) Trade Credit
(b) Debenture
(c) Share
(d) None of the above
► (a) Trade Credit

6. __________ was the first company in India to issue convertible zero interest debentures in January 1990
(a) Reliance Limited
(b) Adani Enterprise
(c) Tata Motors
(d) Mahindra and Mahindra
► (d) Mahindra and Mahindra

7. Under the lease agreement, the lessee gets the right to
(a) Use the asset for a specified period
(b) Share profits earned by the lessor
(c) Sell the assets
(d) Participate in the management of the organisation
► (a) Use the asset for a specified period

8. When one party grants the other party the right to use the asset in return for a periodic payment, it is known as __________
(a) Lease Financing
(b) Public Deposits
(c) Debts
(d) Factoring
► (a) Lease Financing

9. Money obtained by issue of shares is known as ___________
(a) Debts
(b) Loans
(c) Reserve Funds
(d) Share Capital
► (d) Share Capital

10. A person who purchases common stock of a corporation is known as:
(a) Preferred stockholder
(b) Creditor
(c) Bond holder
(d) Common stockholder
► (d) Common stockholder

11. ICICI was established in _________________
(a) 1985
(b) 1975
(c) 1965
(d) 1955
► (d) 1955

12. Commercial papers can be issued only by large and creditworthy companies becuase
(a) It is protected by the Government
(b) It is an Unsecured Debt
(c) It is Fully Secured Debt
(d) None of the above
► (b) It is an Unsecured Debt

13. The maturity period of a commercial paper usually ranges from
(a) 120 to 365 days
(b) 60 to 90 days
(c) 90 to 364 days
(d) 20 to 40 days
► (c) 90 to 364 days

14. Investors who want steady income may not prefer ____________
(a) Bonds
(b) Equity Shares
(c) Debentures
(d) None of the above
► (b) Equity Shares

15. The term 'redeemable' is used for
(a) Public deposits
(b) Commercial paper
(c) Equity shares
(d) Preference shares
► (b) Commercial paper

16. Funds raised through loans and borrowings are ________
(a) Owners Equity
(b) Share Capital
(c) Borrowed funds
(d) None of the above
► (c) Borrowed funds

17. Debentures represent
(a) Fixed capital of company
(b) Fluctuating capital of company
(c) Loan capital of the the company
(d) Permanent capital of the company
► (c) Loan capital of the the company

18. Dividend is paid only on ___________
(a) Bonds
(b) Debentures
(c) Shares
(d) Loans
► (c) Shares

19. Expand ICICI
(a) Indian Credit and Investment Corporation of India
(b) International Credit and Investment Corporation of India
(c) Industrial Credit and Investment Corporation of India
(d) None of the above
► (c) Industrial Credit and Investment Corporation of India

20. Internal sources of capital are those that are
(a) Generated through outsiders such as suppliers
(b) Generated through issue of shares
(c) Generated through loan from commercial banks
(d) Generated within the business
► (d) Generated within the business

21. Expand GDR
(a) Global Depository Receipts
(b) Gross Domestic Receipts
(c) Government Direct Receipts
(d) None of the above
► (a) Global Depository Receipts

22. Life insurance corporation was set up in ________
(a) 1985
(b) 1975
(c) 1956
(d) 1965
► (c) 1956

23. Sources of finance can be categorised as _____________
(a) Source of Generation Basis
(b) Period Basis
(c) Ownership
(d) All of the above
► (d) All of the above

24. Expand ADR
(a) American Depository Receipts
(b) American Direct Receipts
(c) American Domestic Receipts
(d) None of the above
► (a) American Depository Receipts

25. Funds required for purchasing current assets is an example of
(a) Ploughing back of profits
(b) Working capital requirement
(c) Fixed capital requirement
(d) Lease financing
Previous Post Next Post
X
Free Study Rankers App Download Now