R4RIN – MCQs, Mock Tests | Business Studies Business Studies-[Class 11-MCQS ]-Chapter 8 Sources of Business Finance

Internal sources of capital are those that are

1. generated through outsiders such as suppliers
2. generated through loans from commercial banks
3. generated through issue of shares
4. generated within the business

✅ Correct Answer: 4

Under the factoring arrangement; the factor

1. Produces and distributes the goods or services
2. Makes the payment on behalf of the client
3. Collects the client’s debt or account receivables
4. Transfer the goods from one place to another

✅ Correct Answer: 3

Under the lease agreement; the lessee gets the right to

1. Share profits earned by the lessor
2. Participate in the management of the organization
3. Use the asset for a specified period
4. Sell the assets

✅ Correct Answer: 3

ADRs are issued in

1. Canada
2. China
3. India
4. USA

✅ Correct Answer: 4

The term ‘redeemable’ is used for

1. Preference shares
2. Commercial paper
3. Equity shares
4. Public deposits

✅ Correct Answer: 2

When one party grants the other party the right to use the asset in return for a periodic payment; it is known as ____

1. Lease Financing
2. Factoring
3. Public Deposits
4. Debts

✅ Correct Answer: 1

Money obtained by issue of shares is known as _____

1. Debts
2. Share Capital
3. Loans
4. Reserve Funds

✅ Correct Answer: 2

______ was the first company in India to issue convertible zero interest debentures in January 1990

1. Mahindra and Mahindra
2. Adani Enterprise
3. Tata Motors
4. Reliance Limited

✅ Correct Answer: 1

Which of the following is a commercial bank?

1. All of these
2. Canara bank
3. Punjab National Bank
4. State Bank of India

✅ Correct Answer: 1

The ordinary shares of a company are delivered to the depository bank; which in turn issues the depository receipts; known as ____

1. Commercial banks
2. ADR
3. None of these
4. GDR

✅ Correct Answer: 4

Unit Trust of India was established by ______

1. ICICI
2. State Bank Group
3. Indian Government
4. HDFC Bank

✅ Correct Answer: 3

ICICI was established in ________

1. 1975
2. 1955
3. 1985
4. 1965

✅ Correct Answer: 2

Expand ICICI

1. None of these
2. International Credit and Investment Corporation of India
3. Indian Credit and Investment Corporation of India
4. Industrial Credit and Investment Corporation of India

✅ Correct Answer: 3

The maturity period of a commercial paper usually ranges from

1. 20 to 40 days
2. 60 to 90 days
3. 120 to 365 days
4. 90 to 364 days

✅ Correct Answer: 4

Debentures represent

1. Fixed capital of the company
2. Permanent capital of the company
3. Fluctuating capital of the company
4. Loan capital of the company

✅ Correct Answer: 4

Public deposits are the deposits that are raised directly from

1. The public
2. The directors
3. The auditors
4. The owners

✅ Correct Answer: 1

Funds required for purchasing current assets is an example of

1. Fixed capital requirement
2. Ploughing back of profits
3. Working capital requirement
4. Lease financing

✅ Correct Answer: 3

Equity shareholders are called

1. Owners of the company
2. Partners of the company
3. Executives of the company
4. Guardian of the company

✅ Correct Answer: 1

Investors who want steady income may not prefer ______

1. None of these
2. Debentures
3. Equity Shares
4. Bonds

✅ Correct Answer: 3

Dividend is paid only on _____

1. Loans
2. Debentures
3. Bonds
4. Shares

✅ Correct Answer: 4

Funds raised through loans or borrowings are _____

1. Borrowed funds
2. Owners Equity
3. None of these
4. Share Capital

✅ Correct Answer: 1

GDRs can be converted into shares ________

1. At any time
2. After 5 years
3. After 10 years
4. After one year

✅ Correct Answer: 1

State Industrial Development Corporations were established by _______

1. Ministry of Finance
2. None of these
3. Central Government
4. Different States

✅ Correct Answer: 4

Life insurance corporation was set up in _____

1. 1965
2. 1956
3. 1975
4. 1985

✅ Correct Answer: 2

Industrial Finance Corporation of India (IFCI) was established in ____

1. July 1948
2. July 2001
3. July1956
4. July 1991

✅ Correct Answer: 1