Sources of Business Finance MCQs with answers

Dear candidates you will find MCQ questions of 11th Class - Business Studies | Chapter: Sources of Business Finance here. Learn these questions and prepare yourself for coming examinations. You can check the right answer of any question by clicking the option or by clicking view answer button.
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Q. Internal sources of capital are those that are
  • (A) generated through outsiders such as suppliers
  • (B) generated through loans from commercial banks
  • (C) generated through issue of shares
  • (D) generated within the business
πŸ’¬ Discuss
βœ… Correct Answer: (D) generated within the business
Q. Under the factoring arrangement, the factor
  • (A) Produces and distributes the goods or services
  • (B) Makes the payment on behalf of the client
  • (C) Collects the client’s debt or account receivables
  • (D) Transfer the goods from one place to another
πŸ’¬ Discuss
βœ… Correct Answer: (C) Collects the client’s debt or account receivables
Q. Under the lease agreement, the lessee gets the right to
  • (A) Share profits earned by the lessor
  • (B) Participate in the management of the organization
  • (C) Use the asset for a specified period
  • (D) Sell the assets
πŸ’¬ Discuss
βœ… Correct Answer: (C) Use the asset for a specified period
Q. The term β€˜redeemable’ is used for
  • (A) Preference shares
  • (B) Commercial paper
  • (C) Equity shares
  • (D) Public deposits
πŸ’¬ Discuss
βœ… Correct Answer: (B) Commercial paper
Q. When one party grants the other party the right to use the asset in return for a periodic payment, it is known as __________
  • (A) Lease Financing
  • (B) Factoring
  • (C) Public Deposits
  • (D) Debts
πŸ’¬ Discuss
βœ… Correct Answer: (A) Lease Financing
Q. Money obtained by issue of shares is known as ___________
  • (A) Debts
  • (B) Share Capital
  • (C) Loans
  • (D) Reserve Funds
πŸ’¬ Discuss
βœ… Correct Answer: (B) Share Capital
Q. _____________ was the first company in India to issue convertible zero interest debentures in January 1990
  • (A) Mahindra and Mahindra
  • (B) Adani Enterprise
  • (C) Tata Motors
  • (D) Reliance Limited
πŸ’¬ Discuss
βœ… Correct Answer: (A) Mahindra and Mahindra
Q. Which of the following is a commercial bank?
  • (A) State Bank of India
  • (B) Punjab National Bank
  • (C) Canara bank
  • (D) All of these
πŸ’¬ Discuss
βœ… Correct Answer: (D) All of these
Q. The ordinary shares of a company are delivered to the depository bank, which in turn issues the depository receipts, known as _______
  • (A) Commercial banks
  • (B) ADR
  • (C) GDR
  • (D) None of these
πŸ’¬ Discuss
βœ… Correct Answer: (C) GDR
Q. Unit Trust of India was established by ___________
  • (A) ICICI
  • (B) State Bank Group
  • (C) Indian Government
  • (D) HDFC Bank
πŸ’¬ Discuss
βœ… Correct Answer: (C) Indian Government
Q. ICICI was established in ____________.
  • (A) 1975
  • (B) 1955
  • (C) 1985
  • (D) 1965
πŸ’¬ Discuss
βœ… Correct Answer: (B) 1955
Q. Expand ICICI
  • (A) International Credit and Investment Corporation of India
  • (B) Indian Credit and Investment Corporation of India
  • (C) Industrial Credit and Investment Corporation of India
  • (D) None of these
πŸ’¬ Discuss
βœ… Correct Answer: (C) Industrial Credit and Investment Corporation of India
Q. The maturity period of a commercial paper usually ranges from
  • (A) 20 to 40 days
  • (B) 60 to 90 days
  • (C) 120 to 365 days
  • (D) 90 to 364 days
πŸ’¬ Discuss
βœ… Correct Answer: (D) 90 to 364 days
Q. Debentures represent
  • (A) Fixed capital of the company
  • (B) Permanent capital of the company
  • (C) Fluctuating capital of the company
  • (D) Loan capital of the company
πŸ’¬ Discuss
βœ… Correct Answer: (D) Loan capital of the company
Q. Public deposits are the deposits that are raised directly from
  • (A) The public
  • (B) The directors
  • (C) The auditors
  • (D) The owners
πŸ’¬ Discuss
βœ… Correct Answer: (A) The public
Q. Funds required for purchasing current assets is an example of
  • (A) Fixed capital requirement
  • (B) Ploughing back of profits
  • (C) Working capital requirement
  • (D) Lease financing
πŸ’¬ Discuss
βœ… Correct Answer: (C) Working capital requirement
Q. Equity shareholders are called
  • (A) Owners of the company
  • (B) Partners of the company
  • (C) Executives of the company
  • (D) Guardian of the company
πŸ’¬ Discuss
βœ… Correct Answer: (A) Owners of the company
Q. Investors who want steady income may not prefer ____________
  • (A) Bonds
  • (B) Equity Shares
  • (C) Debentures
  • (D) None of these
πŸ’¬ Discuss
βœ… Correct Answer: (B) Equity Shares
Q. Dividend is paid only on ___________
  • (A) Loans
  • (B) Debentures
  • (C) Bonds
  • (D) Shares
πŸ’¬ Discuss
βœ… Correct Answer: (D) Shares
Q. Funds raised through loans or borrowings are ________
  • (A) Borrowed funds
  • (B) Owners Equity
  • (C) Share Capital
  • (D) None of these
πŸ’¬ Discuss
βœ… Correct Answer: (A) Borrowed funds
Q. GDRs can be converted into shares _____________
  • (A) After 5 years
  • (B) At any time
  • (C) After 10 years
  • (D) After one year
πŸ’¬ Discuss
βœ… Correct Answer: (B) At any time
Q. State Industrial Development Corporations were established by _______
  • (A) Ministry of Finance
  • (B) Central Government
  • (C) Different States
  • (D) None of these
πŸ’¬ Discuss
βœ… Correct Answer: (C) Different States
Q. Life insurance corporation was set up in ________
  • (A) 1956
  • (B) 1965
  • (C) 1975
  • (D) 1985
πŸ’¬ Discuss
βœ… Correct Answer: (A) 1956
Q. Industrial Finance Corporation of India (IFCI) was established in _______
  • (A) July, 1948
  • (B) July, 1956
  • (C) July, 1991
  • (D) July, 2001
πŸ’¬ Discuss
βœ… Correct Answer: (A) July, 1948

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