Class 11 Sources Of Business Finance CBSE Questions & Answers

Class 11 · Sources Of Business Finance

This is Business Studies class 11 Sources of Business Finance CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Equity shareholders are called
  • A
    Executives of the company
  • B
    Partners of the company
  • C
    Guardian of the company
  • D
    Owners of the company
    Correct
2
The term ?redeemable? is used for
  • A
    Equity shares
  • B
    Preference shares
    Correct
  • C
    Public deposits
  • D
    Commercial paper
3
Funds required for purchasing current assets is an example of
  • A
    Ploughing back of profits
  • B
    Working capital requirement
    Correct
  • C
    Lease financing
  • D
    Fixed capital requirement
4
ADRs are issued in
  • A
    China
  • B
    India
  • C
    USA
    Correct
  • D
    Canada
5
Public deposits are the deposits that are raised directly from
  • A
    The owners
  • B
    The public
    Correct
  • C
    The auditors
  • D
    The directors
6
Under the lease agreement, the lessee gets the right to
  • A
    Use the asset for a specified period
    Correct
  • B
    Sell the assets
  • C
    Share profits earned by the lessor
  • D
    Participate in the management of the organisation
7
Debentures represent
  • A
    Loan capital of the the company
    Correct
  • B
    Fixed capital of company
  • C
    Fluctuating capital of company
  • D
    Permanent capital of the company
8
Under the factoring arrangement, the factor
  • A
    Transfer the goods from one place to another
  • B
    Collects the client?s debt or account receivables
    Correct
  • C
    Makes the payment on behalf of the client
  • D
    Produces and distributes the goods or services
9
The maturity period of a commercial paper usually ranges from
  • A
    60 to 90 days
  • B
    20 to 40 days
  • C
    90 to 364 days
    Correct
  • D
    120 to 365 days
10
Internal sources of capital are those that are
  • A
    generated through issue of shares
  • B
    generated within the business
    Correct
  • C
    generated through loan from commercial banks
  • D
    generated through outsiders such as suppliers
11
Sources of finance can be categorised as _____________
  • A
    Ownership
  • B
    Period Basis
  • C
    All of these
    Correct
  • D
    Source of Generation Basis
12
Commercial papers can be issued only by large and creditworthy companies becuase
  • A
    It is Fully Secured Debt
  • B
    It is protected by the Government
  • C
    It is an Unsecured Debt
    Correct
  • D
    None of these
13
_________ is an example of short term finance
  • A
    Share
  • B
    None of these
  • C
    Trade Credit
    Correct
  • D
    Debenture
14
Expand GDR
  • A
    Gross Domestic Receipts
  • B
    Global Depository Receipts
    Correct
  • C
    None of these
  • D
    Government Direct Receipts
15
Expand ADR
  • A
    American Domestic Receipts
  • B
    American Direct Receipts
  • C
    American Depository Receipts
    Correct
  • D
    None of these