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Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 7 (60 MCQs)

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1. Out of the following which one is a type of intercorporate deposit.
2. Name one external source of business finance.
3. 12 When a bank asks for 'security' before agreeing to a bank loan it means that:1) the offices must be securely locked at night 2) business assets will be sold by the bank if the loan is not repaid 3) the assets purchased must be insured 4) the managers must provide an assurance that the loan will be repaid
4. What is the safest way to pay for an item to avoid debt?
5. Which deposit will give a flexibility for our future
6. For which of the following source of the finance, a company is required to mortage its assets?
7. Which type of financing involves obtaining funds from banks, financial institutions, or other businesses?
8. Money obtained by issue of shares is known as .....
9. Which is a characteristic of crowdfunding?
10. Owner's fund remains permanently invested, whereas borrowed funds is not a permanent source of investment.
11. What are the disadvantages of external sources of business finance?
12. The method of raising shirt term finance through accounts receivable credit offered by commercial banks is
13. When a company issues commercial paper, which of the following statements is true?
14. What are the different sources of long, medium, and short-term finance?
15. What shareholders get in return on investment?
16. ..... is commenly used by business organisations as a source of short term financing
17. ....provide a preferential right to the share holders with respect to payment of earnings and repayment of capital.
18. How much is the liability of equity shareholders?
19. This source of business finance is used for issue of bonus shares:
20. Which source of financing provides the business with working capital for day-to-day operations?
21. What is an advantage of an overdraft?
22. Are assets that a business expects to hold for one year or more. Examples include property and vehicles.
23. A possible drawback to an entrepreneur of using personal savings to finance a new business enterprise is:
24. What are the factors influencing financial choice?
25. Trade Credit is a
26. What is a key disadvantage of debt factoring?
27. Which instrument saves tax?
28. Which statement is not related to lease financing
29. A public limited company wants to take over a competitor. This will involve a large amount of finance. The best source of finance is likely to be:
30. What are external sources of business finance?
31. Which of the following types of security bears fix rate of return
32. A successful sole trader wants to raise funds to open a second restaurant and is eager to retain full control of the business. Which of the following sources of finance would be the most appropriate to fund this expansion?
33. 9 Which of the following business decisions is likely to need long-term finance? 1) Increasing inventories of goods for the summer season 2) Hiring a car for the sales manager 3) Building a new factory 4) Paying creditors for goods supplied
34. An advantage of taking on a new partner is that:
35. Which of the following financing options is most suitable for a seasonal business?
36. Which of the following is not a short-term source of finance?
37. The problem of over trading is there in .....
38. Debentures are considered a type of:
39. Who is responsible for overseeing financial planning, accounting, and financial risk management in an organization?
40. Which of the following is the most suitable reason for using personal finance?
41. What is a hire purchase?
42. What is the main advantage of factoring?
43. What financial statement shows an organization's financial position at a specific point in time?
44. Which of the following comes under medium-term funds
45. A business can only receive investment through share capital in its first year of trade?
46. Advantages of funding growth through a share issue in all those listed below EXCEPT
47. Which will NOT be considered by a firm before deciding on a suitable source of finance to use?
48. ..... are issued to general public with a preferential right to fixed rate of return payable as dividend and repayment of capital at the end of specified period or liquidation whichever is earlier.
49. The organisations, which require large amount of fixed capital are
50. What type of expenditure is associated with fixed assets?
51. Borrowed funds need not be repaid with an interest rate.
52. Who controls company?
53. Which of the following business decisions is likely to need long-term finance?
54. Which are the internal source of finance
55. ..... provide long term finance
56. What is the term used for the funds invested in the business by its owners?
57. Which ONE of the following relates to the ability of a business to pay its debts as they fall due?
58. The formula for calculating gross profit is:
59. ..... is called the lifeblood of any business enterprise:
60. A business with unpredictable cash flows is least likely to prefer which of the following sources of finance?
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