Class 12 Finance MCQ Chapter 17 Venture Capital and Factoring

Class 12 Finance MCQ Chapter 17 Venture Capital and Factoring Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Finance MCQ Chapter 17 Venture Capital and Factoring Question Answer and select need one. Class 12 Finance MCQ Chapter 17 Venture Capital and Factoring Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.

Class 12 Finance MCQ Chapter 17 Venture Capital and Factoring

Join Telegram channel

Follow us:

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 12 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 MCQs Solutions for All Chapters, You can practice these here.

Venture Capital and Factoring

Chapter: 17

1. Venture capital generally refers to investment in which type of projects?

(i) Low-risk.

(ii) Medium-risk.

(iii) High-risk.

(iv) No-risk.

Ans: (iii) High-risk.

2. The primary aim of venture capital investment is to:

(i) Get regular interest.

(ii) Earn a high rate of return.

(iii) Gain government subsidies.

(iv) Avoid risks.

Ans: (ii) Earn a high rate of return.

3. Which type of financing is mainly involved in venture capital?

(i) Debt financing.

(ii) Equity participation.

(iii) Leasing.

(iv) Hire purchase.

Ans: (ii) Equity participation.

4. Venture capitalists generally prefer to invest in firms that are:

(i) Well-established.

(ii) Technology-oriented and innovative.

(iii) Large government enterprises.

(iv) Traditional businesses.

Ans: (ii) Technology-oriented and innovative.

5. Factoring is a financial service related to:

(i) Shares.

(ii) Debts/Receivables.

(iii) Insurance.

(iv) Mutual funds.

Ans: (ii) Debts/Receivables.

6. In factoring, the company selling its receivables is called:

(i) Factor.

(ii) Corporate client.

(iii) Buyer.

(iv) Banker.

Ans: (ii) Corporate client.

7.The third party who collects debts on behalf of the client in factoring is known as:

(i) Debtor.

(ii) Factor.

(iii) Promoter.

(iv) Guarantor.

Ans: (ii) Factor.

8. Venture capital finance is usually:

(i) Short-term.

(ii) Long-term.

(iii) Medium-term.

(iv) None of these.

Ans: (ii) Long-term.

9. Which of the following is NOT a function of the factor?

(i) Collection of receivables.

(ii) Sales ledger maintenance.

(iii) Product manufacturing.

(iv) Providing advance payment.

Ans: (iii) Product manufacturing.

10. In recourse factoring, the risk of bad debts is borne by:

(i) Factor.

(ii) Corporate client.

(iii) Government.

(iv) Bank.

Ans: (ii) Corporate client.

11. Which one is a stage of venture capital financing?

(i) Final payment.

(ii) Seed capital.

(iii) Debenture issue.

(iv) Fixed deposit.

Ans: (ii) Seed capital.

12. Factoring helps corporate clients mainly by:

(i) Marketing their products.

(ii) Collecting their receivables.

(iii) Producing goods.

(iv) Setting up factories.

Ans: (ii) Collecting their receivables.

13. A type of factoring where the factor bears the risk of bad debts is:

(i) Recourse factoring.

(ii) Non-recourse factoring.

(iii) Domestic factoring.

(iv) Disclosed factoring.

Ans: (ii) Non-recourse factoring.

14. Which is NOT a benefit of factoring?

(i) Advance payment.

(ii) Relieving client from debt collection.

(iii) Providing credit information.

(iv) Tax exemption.

Ans: (iv) Tax exemption.

15. The financing provided by venture capitalists is usually in the form of:

(i) Equity shares.

(ii) Fixed deposits.

(iii) Bonds.

(iv) Gold.

Ans: (i) Equity shares.

Parimol

Hi! my Name is Parimal Roy. I have completed my Bachelor’s degree in Philosophy (B.A.) from Silapathar General College. Currently, I am working as an HR Manager at Dev Library. It is a website that provides study materials for students from Class 3 to 12, including SCERT and NCERT notes. It also offers resources for BA, B.Com, B.Sc, and Computer Science, along with postgraduate notes. Besides study materials, the website has novels, eBooks, health and finance articles, biographies, quotes, and more.