Chapter-wise MCQ Questions

Looking for a reliable source for MCQ - Multiple Choice Questions of Sources of Business Finance in Class 11 Business Studies? Look no further. Our experts have carefully curated all the MCQs, accompanied by answers.

If you need additional preparatory materials like NCERT Solutions or CBSE Sample Papers, count on us. Access Chapter-wise MCQ Questions with Answers of Class 11 Business Studies, available for free in PDF format.

Question-1. Investors who want steady income may not prefer ____________

  1. Bonds
  2. Equity Shares
  3. Debentures
  4. None of the above
Answer-1

Question-2. Money obtained by issue of shares is known as ___________

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

Question-3. ICICI was established in _________________

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

Question-4. ______ 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
Answer-4

Question-5. __________ was the first company in India to issue convertible zero interest debentures in January 1990

  1. Reliance Limited
  2. Adani Enterprise
  3. Tata Motors
  4. Mahindra and Mahindra
Answer-5

Question-6. ADRs are issued in

  1. Canada
  2. China
  3. India
  4. USA
Answer-6

Question-7. An individual authorized by another person, called the principle to act on the latter's on behalf is known as . . . .

  1. Agent
  2. Servant
  3. Subordinate
  4. Assistant
Answer-7

Question-8. 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
Answer-8

Question-9. Dividend is paid only on ___________

  1. Bonds
  2. Debentures
  3. Shares
  4. Loans
Answer-9

Question-10. Expand GDR

  1. Global Depository Receipts
  2. Gross Domestic Receipts
  3. Government Direct Receipts
  4. None of the above
Answer-10

Question-11. Expand ICICI

  1. Indian Credit and Investment Corporation of India
  2. International Credit and Investment Corporation of India
  3. Industrial Credit and Investment Corporation of India
  4. None of the above
Answer-11

Question-12. Funds raised through loans or borrowings are _____

  1. Borrowed funds
  2. Owners Equity
  3. None of these
  4. Share Capital
Answer-12

Question-13. 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
Answer-13

Question-14. ICICI was established in _________________

  1. 1985
  2. 1975
  3. 1965
  4. 1955
Answer-14

Question-15. If a firm's debt ratio is 45%, this means _____ of the firm's assets are financed by equity financing.

  1. 50%
  2. 55%
  3. 45%
  4. Cannot be determined without more information
Answer-15

Question-16. In which form of Business owners have limited liability is

  1. Sole Proprietorship
  2. Partnership
  3. Joint Stock Company
  4. Entrepreneurs
Answer-16

Question-17. Industrial Finance Corporation of India (IFCI) was established in

  1. July 1948
  2. July 2001
  3. July1956
  4. July 1991
Answer-17

Question-18. 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
Answer-18

Question-19. Investors who want steady income may not prefer ____________

  1. Bonds
  2. Equity Shares
  3. Debentures
  4. None of the above
Answer-19

Question-20. Life insurance corporation was set up in ________

  1. 1985
  2. 1975
  3. 1956
  4. 1965
Answer-20

Question-21. Money obtained by issue of shares is known as _____

  1. Debts
  2. Share Capital
  3. Loans
  4. Reserve Funds
Answer-21

Question-22. Public deposits are the deposits that are raised directly from

  1. The public
  2. The directors
  3. The auditors
  4. The owners
Answer-22

Question-23. Sources of finance can be categorised as _____________

  1. Source of Generation Basis
  2. Period Basis
  3. Ownership
  4. All of the above
Answer-23

Question-24. 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
Answer-24

Question-25. The term 'redeemable' is used for

  1. Preference shares
  2. Commercial paper
  3. Equity shares
  4. Public deposits
Answer-25

Question-26. 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
Answer-26

Question-27. What are internal sources of capital?

  1. Generated through issue of shares.
  2. Generated through outsiders such as suppliers.
  3. Generated within the business.
  4. Generated through loans from commercial banks.
Answer-27

Question-28. Which of the following factors that are considered to solve the financial problems of business organizations are- i. Cost of Capital Supply ii. Importance and Objectives of capital iii. Different types of benefits

  1. i and ii
  2. i and iii
  3. ii and iii
  4. i, ii and iii
Answer-28

Question-29. Which of the following is a commercial bank?

  1. Punjab National Bank
  2. Canara bank
  3. State Bank of India
  4. All of the above
Answer-29

Question-30. Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods . . . .

  1. Ordinary annuity
  2. Annuity due
  3. Perpetuity
  4. A and C
Answer-30

Question-31. Which of the following ratios are intended to address the firm's financial leverage?

  1. Liquidity Ratios
  2. Long-term Solvency Ratios
  3. Asset Management Ratios
  4. Profitability Ratios
Answer-31

Question-32. Which of the following ratios are particularly interesting to shortterm creditors?

  1. Liquidity Ratios
  2. Long-term Solvency Ratios
  3. Profitability Ratios
  4. Market Value Ratios
Answer-32

Question-33. Which of the following statement is TRUE regarding debt?

  1. Debt is an ownership interest in the firm.
  2. Unpaid debt can result in bankruptcy or financial failure.
  3. Debt provides the voting rights to the bondholders.
  4. Corporation's payment of interest on debt is fully taxable.
Answer-33

Question-34. _____________ 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
Answer-34

Question-35. ADRs are issued in

  1. Canada
  2. China
  3. India
  4. USA
Answer-35

Question-36. 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
Answer-36

Question-37. Dividend is paid only on ___________

  1. Loans
  2. Debentures
  3. Bonds
  4. Shares
Answer-37

Question-38. Equity shareholders are called

  1. Owners of the company
  2. Partners of the company
  3. Executives of the company
  4. Guardian of the company
Answer-38

Question-39. 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
Answer-39

Question-40. Funds raised through loans or borrowings are ________

  1. Borrowed funds
  2. Owners Equity
  3. None of these
  4. Share Capital
Answer-40

Question-41. 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
Answer-41

Question-42. GDRs can be converted into shares _____________

  1. At any time
  2. After 5 years
  3. After 10 years
  4. After one year
Answer-42

Question-43. ICICI was established in _________________

  1. 1975
  2. 1955
  3. 1985
  4. 1965
Answer-43

Question-44. Industrial Finance Corporation of India (IFCI) was established in _______

  1. July, 1948
  2. July, 2001
  3. July, 1956
  4. July,
Answer-44

Question-45. 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
Answer-45

Question-46. Investors who want steady income may not prefer ____________

  1. None of these
  2. Debentures
  3. Equity Shares
  4. Bonds
Answer-46

Question-47. Life insurance corporation was set up in ________

  1. 1965
  2. 1956
  3. 1975
  4. 1985
Answer-47

Question-48. Money obtained by issue of shares is known as ___________

  1. Debts
  2. Share Capital
  3. Loans
  4. Reserve Funds
Answer-48

Question-49. Public deposits are the deposits that are raised directly from

  1. The public
  2. The directors
  3. The auditors
  4. The owners
Answer-49

Question-50. State Industrial Development Corporations were established by _______

  1. Ministry of Finance
  2. None of these
  3. Central Government
  4. Different States
Answer-50

Question-51. 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
Answer-51

Question-52. 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
Answer-52

Question-53. The term 'redeemable' is used for

  1. Preference shares
  2. Commercial paper
  3. Equity shares
  4. Public deposits
Answer-53

Question-54. 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
Answer-54

Question-55. 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
Answer-55

Question-56. Unit Trust of India was established by ___________

  1. ICICI
  2. State Bank Group
  3. Indian Government
  4. HDFC Bank
Answer-56

Question-57. 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
Answer-57

Question-58. Which of the following is a commercial bank?

  1. All of these
  2. Canara bank
  3. Punjab National Bank(d) State Bank of India
Answer-58



Tags:

Multiple Choice Questions and Answers on Sources of Business Finance
Sources of Business Finance Multiple Choice Questions and Answers
Sources of Business Finance Trivia Quiz
Sources of Business Finance Question and Answer PDF Online