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Sources of Business Finance Class 11 MCQs Questions with Answers
Question 1.
Sources of finance can be categorised as _____________
(a) Source of Generation Basis
(b) Period Basis
(c) Ownership
(d) All of the above
Answer
Answer: (d) All of the above
Question 2.
Expand ADR
(a) American Depository Receipts
(b) American Direct Receipts
(c) American Domestic Receipts
(d) None of the above
Answer
Answer: (a) American Depository Receipts
Question 3.
Industrial Finance Corporation of India (IFCI) was established in _______
(a) July 1948
(b) July 2001
(c) July 1956
(d) July 1991
Answer
Answer: (a) July 1948
Question 4.
_________ is an example of short term finance
(a) Trade Credit
(b) Debenture
(c) Share
(d) None of the above
Answer
Answer: (a) Trade Credit
Question 5.
__________ was the first company in India to issue convertible zero interest debentures in January 1990
(a) Reliance Limited
(b) Adani Enterprise
(c) Tata Motors
(d) Mahindra and Mahindra
Answer
Answer: (d) Mahindra and Mahindra
Question 6.
Expand GDR
(a) Global Depository Receipts
(b) Gross Domestic Receipts
(c) Government Direct Receipts
(d) None of the above
Answer
Answer: (a) Global Depository Receipts
Question 7.
Money obtained by issue of shares is known as ___________
(a) Debts
(b) Loans
(c) Reserve Funds
(d) Share Capital
Answer
Answer: (d) Share Capital
Question 8.
A person who purchases the common stock of a corporation is known as:
(a) Preferred stockholder
(b) Creditor
(c) Bondholder
(d) Common stockholder
Answer
Answer: (d) Common stockholder
Question 9.
ICICI was established in _________________
(a) 1985
(b) 1975
(c) 1965
(d) 1955
Answer
Answer: (d) 1955
Question 10.
Commercial papers can be issued only by large and creditworthy companies because
(a) It is protected by the Government
(b) It is an Unsecured Debt
(c) It is Fully Secured Debt
(d) None of the above
Answer
Answer: (b) It is an Unsecured Debt
Question 11.
Which of the following is a commercial bank?
(a) Punjab National Bank
(b) Canara bank
(c) State Bank of India
(d) All of the above
Answer
Answer: (d) All of the above
Question 12.
State Industrial Development Corporations were established by _______
(a) Ministry of Finance
(b) the Different States
(c) Central Government
(d) None of the above
Answer
Answer: (b) the Different States
Question 13.
Under the lease agreement, the lessee gets the right to
(a) Use the asset for a specified period
(b) Share profits earned by the lessor
(c) Sell the assets
(d) Participate in the management of the organisation
Answer
Answer: (a) Use the asset for a specified period
Question 14.
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) Public Deposits
(c) Debts
(d) Factoring
Answer
Answer: (a) Lease Financing
Question 15.
The term ‘redeemable’ is used for
(a) Public deposits
(b) Commercial paper
(c) Equity shares
(d) Preference shares
Answer
Answer: (b) Commercial paper
Question 16.
Funds raised through loans and borrowings are ________
(a) Owners Equity
(b) Share Capital
(c) Borrowed funds
(d) None of the above
Answer
Answer: (c) Borrowed funds
Question 17.
Expand ICICI
(a) Indian Credit and Investment Corporation of India
(b) International Credit and Investment Corporation of India
(c) Industrial Credit and Investment Corporation of India
(d) None of the above
Answer
Answer: (c) Industrial Credit and Investment Corporation of India
Question 18.
Internal sources of capital are those that are
(a) Generated through outsiders such as suppliers
(b) Generated through the issue of shares
(c) Generated through a loan from commercial banks
(d) Generated within the business
Answer
Answer: (d) Generated within the business
Question 19.
Life insurance corporation was set up in ________
(a) 1985
(b) 1975
(c) 1956
(d) 1965
Answer
Answer: (c) 1956
Question 20.
Debentures represent
(a) Fixed capital of the company
(b) Fluctuating capital of the company
(c) Loan capital of the company
(d) Permanent capital of the company
Answer
Answer: (c) Loan capital of the company
Question 21.
Dividend is paid only on ___________
(a) Bonds
(b) Debentures
(c) Shares
(d) Loans
Answer
Answer: (c) Shares
Question 22.
The maturity period of a commercial paper usually ranges from
(a) 120 to 365 days
(b) 60 to 90 days
(c) 90 to 364 days
(d) 20 to 40 days
Answer
Answer: (c) 90 to 364 days
Question 23.
Investors who want steady income may not prefer ____________
(a) Bonds
(b) Equity Shares
(c) Debentures
(d) None of the above
Answer
Answer: (b) Equity Shares
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