This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 10 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When a business sells its old machinery to raise funds, it is an example of: A) Sales of Assets. B) Revenue. C) Investment. D) Leasing. Show Answer Correct Answer: A) Sales of Assets. 2. Companies generally invite public deposits for a period up to: A) 5 years. B) 4 years. C) 3 years. D) 10 years. Show Answer Correct Answer: C) 3 years. 3. What is the most likely source of finance for buying property? A) Mortgage. B) Factoring. C) A bank loan. D) None of the above. Show Answer Correct Answer: A) Mortgage. 4. Complete the following statements with appropriate word(s) in the blank spaces:2. The requirement of finance for the purchase of land, building, machinery etc. is known as ..... fund. A) Short-term. B) Long-term. C) All the above. D) None of the above. Show Answer Correct Answer: B) Long-term. 5. Which of the following is NOT a feature of equity shares? A) Higher profits in good years. B) Voting rights. C) Fixed rate of dividend. D) Permanent capital. Show Answer Correct Answer: C) Fixed rate of dividend. 6. Which of the following is not a long term source? A) Debentures. B) Equity Shares. C) Public Deposits. D) Financial Institutions. Show Answer Correct Answer: C) Public Deposits. 7. What is the primary purpose of business finance? A) To procure funds for business operations. B) To pay taxes. C) To increase employee salaries. D) To invest in real estate. Show Answer Correct Answer: A) To procure funds for business operations. 8. Which type of budget allocates no money for spending unless it has firstly been justified? A) Zero based budget. B) Historical budgeting. C) Favourable variance. D) Operating profit. Show Answer Correct Answer: A) Zero based budget. 9. State the source for finance that can be used by the company to avail the benefit to tax saving. A) Equity. B) Preference. C) Debentures. D) None of these. Show Answer Correct Answer: C) Debentures. 10. Dividends are A) Paid to lenders. B) Not paid to preference shareholders. C) Not allowable for corporation tax. D) Not paid to ordinary shareholders. Show Answer Correct Answer: C) Not allowable for corporation tax. 11. Businesses need finance for different reasons. Payment of day-to-day expenses is one of these reasons. What is this finance called? A) Capital expenditure. B) Start-up capital. C) Working capital. D) Cash flow. Show Answer Correct Answer: C) Working capital. 12. A short-term source of finance from a bank that usually is only used in an emergency/when needed A) Overdraft. B) Loan. C) Share capital. D) Credit card. Show Answer Correct Answer: A) Overdraft. 13. ..... are partly equity shares and partly debentures. A) Trade credit. B) Financial institution. C) Preference shares. D) None of these. Show Answer Correct Answer: C) Preference shares. 14. Raising funds from a wide variety of small investors by publicising an idea on the internet is called: A) Personal savings. B) Venture capital. C) Trade credit. D) Crowdfunding. Show Answer Correct Answer: D) Crowdfunding. 15. An external source of finance often used to meet short-term cash shortages A) Retained profit. B) Share issue. C) Overdraft. D) None of the above. Show Answer Correct Answer: C) Overdraft. 16. Debentures can best be described as a form of A) Short-term loan with variable interest rates. B) Medium-term loan with variable interest rates. C) Long-term loan with a fixed interest rate. D) Long term security giving the holder part ownership of the business. Show Answer Correct Answer: C) Long-term loan with a fixed interest rate. 17. Long-term sources of business finance are usually used for? A) Covering day-to-day operational expenses. B) Paying short-term debts. C) Funding short-term projects. D) Funding investments that will benefit the company over an extended period. Show Answer Correct Answer: D) Funding investments that will benefit the company over an extended period. 18. A rights issue involves the sale of what? A) New shares on the stock market. B) Fixed assets. C) New shares to existing shareholders. D) Parts of the business. Show Answer Correct Answer: A) New shares on the stock market. 19. Preference shares that can be converted into equity shares within a specified period of time are known as A) Cumulative preference shares. B) Participating preference shares. C) Non cumulative preference shares. D) Convertible preference shares. Show Answer Correct Answer: D) Convertible preference shares. 20. Which type of funds are equity linked debt securities that are to be converted into equity or depository receipts after a specific period A) Foreign currency convertible bonds. B) ADR. C) Equity shares. D) GDR. Show Answer Correct Answer: A) Foreign currency convertible bonds. 21. Complete the following statements with appropriate word(s) in the blank spaces:10. Payment of dividend to the shareholders is not compulsory. A) Equity. B) Preference. C) All the above. D) None of the above. Show Answer Correct Answer: A) Equity. 22. Share, regarded as those shares which will get dividend and repayment of capital only after settlement of the claims of preference shareholders is termed as A) Equity Share. B) Preference Share. C) Debenture. D) Bonus Share. Show Answer Correct Answer: A) Equity Share. 23. What is a one-year accounting period called? A) Financial Forecast. B) Operating Cost. C) Fiscal Year. D) Financial Finnish. Show Answer Correct Answer: C) Fiscal Year. 24. Which of the following is a commercial bank? A) Canara bank. B) Punjab National Bank. C) State Bank of India. D) All of these. Show Answer Correct Answer: D) All of these. 25. Which ONE of the following items would be found in the income statement of a business? A) Equipment. B) Investments. C) Gross profit. D) Accounts payable. Show Answer Correct Answer: C) Gross profit. ← PreviousNext →Related QuizzesClass 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 1Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 2Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 3Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 4Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 5Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 6Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 7Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 8Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 9Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books