Class 11 Business Studies MCQ Chapter 8 Sources of Business Finance Solutions to each chapter is provided in the list so that you can easily browse through different chapters Class 11 Business Studies MCQ Chapter 8 Sources of Business Finance Question Answer and select need one. NCERT Class 11 Business Studies MCQ Chapter 8 Sources of Business Finance Solutions Download PDF. AHSEC Class 11 Business Studies Multiple Choice Solutions.
Class 11 Business Studies MCQ Chapter 8 Sources of Business Finance
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. NCERT Class 11 Business Studies Objective Type Solutions are part of All Subject Solutions. Here we have given AHSEC Class 11 Business Studies Multiple Choice Question and Answer, HS First Year Business Studies MCQ Solutions for All Chapters, You can practice these here.
Sources of Business Finance
Chapter: 8
| MCQ |
1. Equity shareholders are called
(i) Owners of the company.
(ii) Partners of the company.
(iii) Executive of the company.
(iv) Guardian of the company
Ans: (i) Owners of the company.
2. The term irredeemable is used for
(i) Preference shares.
(ii) Commercial paper.
(iii) Equity shares.
(iv) Public deposit.
Ans: (i) Preference shares.
3. Funds required for purchasing current assets is an example of:
(i) Fixed capital requirement.
(ii) Ploughing back of profits.
(iii) Working capital requirement.
(iv) Lease financing.
Ans: (iii) Working capital requirement.
4. ADRS are issued in
(i) Canada.
(ii) china.
(iii) India.
(iv) USA.
Ans: (iv) USA.
5. Public deposits are the deposits that are raised directly from-
(i) The public.
(ii) The directors.
(iii) The auditors.
(iv) The owners.
Ans: (i) The public.
6. Under the lease agreement the lessee gets the right to –
(i) Share profits earned.
(ii) Participate in the management of the organisation.
(iii) Use the asset for a specificized period.
(iv) Sue the assets.
Ans: (iii) Use the asset for a specified period.
7. Debenture represent –
(i) Fixed capital of the company.
(ii) Permanent capital of the company.
(iii) Fluctuating capital of the company.
(iv) Loan capital of the company.
Ans: (i) Loan capital of the company.
8. Under the factoring arrangement, the factory
(i) Produces and distributes.
(ii) Makes the payment on behalf of the client.
(iii) collects the client’s debt or account receivable.
(iv) Transfer the goods from one place to another.
Ans: (iii) Collects the clients debt or account receivables.
9. The maturity period of a commercial paper usually range from –
(i) 20 to 40 days.
(ii) 60 to 90 days.
(iii) 120 to 365 days.
(iv) 90 to 364 days.
Ans: (i) 90 to 364 days.
10. Internal sources of capital are those that are:
(i) Generated through outsiders such as suppliers.
(ii) Generated through loans from commercial banks.
(iii) Generated through issue of shares.
(iv) Generated within the business.
Ans: (iv) Generated within the business.
11. The need for funds arises from the stage when an entrepreneur makes a decision:
(i) To buy machine.
(ii) To start a business.
(iii) To travel.
(iv) None of the above.
Ans: (ii) To start a business.
12. On the basis of ownership, the sources can be classified into:
(i) Owner’s funds.
(ii) Borrowed funds.
(iii) Both (i) and (ii).
(iv) None of the above.
Ans: (iii) Both (i) and (ii).
13. What type of credit is usually given for the purchase of supplies?
(i) Trade credit.
(ii) Bank loan.
(iii) Equity shares.
(iv) Public deposits.
Ansr: (i) Trade credit.
14. Which of the following is not an internal source of finance?
(i) Retained earnings.
(ii) Issue of shares.
(iii) Sale of assets.
(iv) Depreciation provisions.
Ans: (ii) Issue of shares.
15. A business can generate funds internally by:
(i) Accelerating collection of receivables.
(ii) ploughing back its profits.
(iii) Disposing of surplus inventories.
(iv) All of the above.
Ans: (iv) All of the above.
