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Business Studies-[Class 11-MCQS ]-Chapter 8 Sources of Business Finance
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1. Internal sources of capital are those that are
generated through outsiders such as suppliers
generated through loans from commercial banks
generated through issue of shares
generated within the business
2. Under the factoring arrangement; the factor
Produces and distributes the goods or services
Makes the payment on behalf of the client
Collects the client’s debt or account receivables
Transfer the goods from one place to another
3. Under the lease agreement; the lessee gets the right to
Share profits earned by the lessor
Participate in the management of the organization
Use the asset for a specified period
Sell the assets
4. ADRs are issued in
Canada
China
India
USA
5. The term ‘redeemable’ is used for
Preference shares
Commercial paper
Equity shares
Public deposits
6. When one party grants the other party the right to use the asset in return for a periodic payment; it is known as ____
Lease Financing
Factoring
Public Deposits
Debts
7. Money obtained by issue of shares is known as _____
Debts
Share Capital
Loans
Reserve Funds
8. ______ was the first company in India to issue convertible zero interest debentures in January 1990
Mahindra and Mahindra
Adani Enterprise
Tata Motors
Reliance Limited
9. Which of the following is a commercial bank?
All of these
Canara bank
Punjab National Bank
State Bank of India
10. The ordinary shares of a company are delivered to the depository bank; which in turn issues the depository receipts; known as ____
Commercial banks
ADR
None of these
GDR
11. Unit Trust of India was established by ______
ICICI
State Bank Group
Indian Government
HDFC Bank
12. ICICI was established in ________
1975
1955
1985
1965
13. Expand ICICI
None of these
International Credit and Investment Corporation of India
Indian Credit and Investment Corporation of India
Industrial Credit and Investment Corporation of India
14. The maturity period of a commercial paper usually ranges from
20 to 40 days
60 to 90 days
120 to 365 days
90 to 364 days
15. Debentures represent
Fixed capital of the company
Permanent capital of the company
Fluctuating capital of the company
Loan capital of the company
16. Public deposits are the deposits that are raised directly from
The public
The directors
The auditors
The owners
17. Funds required for purchasing current assets is an example of
Fixed capital requirement
Ploughing back of profits
Working capital requirement
Lease financing
18. Equity shareholders are called
Owners of the company
Partners of the company
Executives of the company
Guardian of the company
19. Investors who want steady income may not prefer ______
None of these
Debentures
Equity Shares
Bonds
20. Dividend is paid only on _____
Loans
Debentures
Bonds
Shares
21. Funds raised through loans or borrowings are _____
Borrowed funds
Owners Equity
None of these
Share Capital
22. GDRs can be converted into shares ________
At any time
After 5 years
After 10 years
After one year
23. State Industrial Development Corporations were established by _______
Ministry of Finance
None of these
Central Government
Different States
24. Life insurance corporation was set up in _____
1965
1956
1975
1985
25. Industrial Finance Corporation of India (IFCI) was established in ____
July 1948
July 2001
July1956
July 1991
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