Class 11 Finance MCQ Chapter 1 Basics of Finance Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 11 Finance MCQ Chapter 1 Basics of Finance Question Answer and select need one. Class 11 Finance MCQ Chapter 1 Basics of Finance Solutions Download PDF. AHSEC Class 11 Banking Multiple Choice Solutions.
Class 11 Finance MCQ Chapter 1 Basics of 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. AHSEC Class 11 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQ Solutions for All Chapters, You can practice these here.
Basics of Finance
Chapter: 1
| MCQ |
1. What is the primary purpose of finance in a business?
(i) To calculate the profit.
(ii) To manage funds effectively.
(iii) To hire more employees.
(iv) To reduce production costs.
Ans: (ii) To manage funds effectively.
2. Which of the following is a common source of short-term finance?
(i) Issuing bonds.
(ii) Taking a loan from a bank.
(iii) Retained earnings.
(iv) Trade credit.
Ans: (iv) Trade credit.
3. Which financial statement shows a company’s assets, liabilities, and owner’s equity?
(i) Income statement.
(ii) Statement of cash flows.
(iii) Balance sheet.
(iv) Profit and loss statement.
Ans: (iii) Balance sheet.
4. What is the main role of finance in economic activities?
(i) To act as a long-term savings plan.
(ii) To serve as the lifeline of economic, social, and administrative activities.
(iii) To support entertainment expenses.
(iv) To decrease investment levels.
Ans: (ii) To serve as the lifeline of economic, social, and administrative activities.
5. What does finance mean in common parlance?
(i) The process of spending capital on luxury goods.
(ii) The process of raising funds or capital for expenditure.
(iii) The calculation of monthly expenses.
(iv) The payment of taxes to the government.
Ans: (ii) The process of raising funds or capital for expenditure.
6. What is the main objective of finance in an organisation, as per Howard and Upton’s definition?
(i) To increase the company’s profits.
(ii) To carry out organisational objectives satisfactorily.
(iii) To hire more employees.
(iv) To expand market share.
Ans: (ii) To carry out organisational objectives satisfactorily.
7. In Bonneville and Deway’s definition, business finance includes which of the following aspects?
(i) Managing customer relationships.
(ii) Raising, providing, and managing funds.
(iii) Focusing solely on profit generation.
(iv) Reducing operational costs.
Ans: (ii) Raising, providing, and managing funds.
8. Finance is considered a branch of which of the following disciplines?
(i) Accounting.
(ii) Economics.
(iii) Marketing.
(iv) Human Resources.
Ans: (ii) Economics.
9. Which of the following elements is NOT part of finance’s composing elements?
(i) Markets.
(ii) Human resources.
(iii) Instruments.
(iv) Institutions.
Ans: (ii) Human resources.
10. Finance is defined as an exchange of which of the following?
(i) Only money.
(ii) Only goods.
(iii) Available resources.
(iv) Barter trading only.
Ans: (iii) Available resources.
11. Which of the following is NOT a component of internal financial controls in an organization?
(i) Regulatory compliance.
(ii) Tax filing procedures.
(iii) Fraud prevention and detection.
(iv) Efficiency of business conduct.
Ans: (ii) Tax filing procedures.
12. Long-term finance is generally used for:
(i) Paying employee salaries.
(ii) Buying fixed assets like plant or land.
(iii) Covering day-to-day expenses.
(iv) Short-term investments.
Ans: (ii) Buying fixed assets like plant or land.
13. Finance obtained through issuing shares is an example of:
(i) Debt finance.
(ii) Indirect finance.
(iii) Equity finance.
(iv) Public finance.
Ans: (iii) Equity finance.
14. What is direct finance?
(i) Borrowing through intermediaries.
(ii) Borrowing directly from lenders in financial markets.
(iii) Acquiring funds through government grants.
(iv) Financing through personal savings.
Ans: (ii) Borrowing directly from lenders in financial markets.
15. Debt finance represents:
(i) Money owed to shareholders.
(ii) Funds advanced by external entities like banks.
(iii) Investments made in government securities.
(iv) Retained earnings within a company.
Ans: (ii) Funds advanced by external entities like banks.
