This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 12 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which source of finance is usually secured against an asset that could be seized if the loan is not repaid? A) Share capital. B) Crowd funding. C) Loans. D) Overdraft. Show Answer Correct Answer: C) Loans. 2. Renting an asset over a number of years while making fixed regular payments A) Medium term loan. B) Bank Overdraft. C) Hire Purchase. D) Leasing. Show Answer Correct Answer: D) Leasing. 3. What does 'variance analysis' show? A) The difference between budgeted and actual figures. B) The cost of producing one unit. C) The movement of cash into and out of a business. D) The amount of income from sales. Show Answer Correct Answer: A) The difference between budgeted and actual figures. 4. What are unsecured loan certificates issued by a company, usually with a fixed rate of interest and a set date of repayment, called? A) Mutual funds. B) Stocks. C) Debentures. D) Bonds. Show Answer Correct Answer: C) Debentures. 5. What is the full form of IDR: A) International Direct Receipt. B) Indian Depository Receipt. C) International Depository Receipt. D) Indian Direct Receipt. Show Answer Correct Answer: B) Indian Depository Receipt. 6. Which is internal source of business finance A) Loans from commercial banks. B) Debentures. C) Retained earnings. D) Trade credit. Show Answer Correct Answer: C) Retained earnings. 7. What is the primary risk of debt financing for a business? A) Ownership dilution. B) Tax benefits. C) Obligation to repay with interest. D) No voting rights. Show Answer Correct Answer: C) Obligation to repay with interest. 8. ..... shareholders get voting rights in a company A) Equity Shareholders. B) Preference Shareholders. C) Both (a) and (b). D) None of the above. Show Answer Correct Answer: A) Equity Shareholders. 9. Which of the following best defines "internal finance" ? A) The raising of capital/cash from within/inside the business, such as owner's capital, personal savings, and retained profit. B) Money raised from outside the business. C) A sum of money given by a government or other organisation. D) An external method of finance borrowed from a bank. Show Answer Correct Answer: A) The raising of capital/cash from within/inside the business, such as owner's capital, personal savings, and retained profit. 10. A financial statement that records the assets and liabilities of a business on a particular day at the end of an accounting period. A) Capital Expenditure. B) Revenue Expenditure. C) Statement of Financial Position (used to be called Balance Sheet). D) Income Statement. Show Answer Correct Answer: C) Statement of Financial Position (used to be called Balance Sheet). 11. Ordinary shares in limited companies A) Have a limited life, with no voting rights but receive dividends. B) Have an unlimited life, and voting rights but receive no dividends. C) Have a limited life, and voting rights and receive dividends. D) Have an unlimited life, and voting rights and receive dividends. Show Answer Correct Answer: D) Have an unlimited life, and voting rights and receive dividends. 12. There must be sufficient finance to pay for the daily running of the business. This money is known as A) Working capital. B) Work-in-progress. C) Retained profit. D) Buffer stocks. Show Answer Correct Answer: A) Working capital. 13. The word 'redeemable' is related to ..... A) Trade Credit. B) Equity Shares. C) Debentures. D) Retained Earnings. Show Answer Correct Answer: C) Debentures. 14. Full form of GDR is: A) Global Depository Receipt. B) Global Decomposite Receipt. C) Global Direct Receipt. D) Global Depository Repayment. Show Answer Correct Answer: A) Global Depository Receipt. 15. 14 Which one of the following factors should be considered by a manager when planning finance for an expansion programme? 1) The legal form of the business 2) The location of the planned expansion 3) The number of workers employed 4) The time of year the expansion is planned for A) . B) . C) . D) . Show Answer Correct Answer: A) . 16. An internal source of finance that is generated from business activity A) Retained profit. B) Share issue. C) Overdraft. D) None of the above. Show Answer Correct Answer: A) Retained profit. 17. What is the main characteristic of debt financing? A) Investing in stocks and bonds. B) Using personal savings to fund a business. C) Receiving donations from investors. D) Borrowing money that must be repaid with interest. Show Answer Correct Answer: D) Borrowing money that must be repaid with interest. 18. Which type of preference share can accumulate unpaid dividends in future years A) Participating. B) Cumulative. C) Convertible. D) Non-participating. Show Answer Correct Answer: B) Cumulative. 19. ROCE will be used by? A) Shareholders. B) Potential investors. C) Managers. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. What does external source of finance mean? A) A source from within the business. B) A source from outside the business. C) All the above. D) None of the above. Show Answer Correct Answer: B) A source from outside the business. 21. Which holders do not enjoy voting rights A) ADRs. B) IDRs. C) GDRs. D) None of the above. Show Answer Correct Answer: C) GDRs. 22. Which of the following statements best describe debentures? A) Long term bonds issued by businesses. B) Short term loans by banks to businesses. C) A type of overdraft. D) A loan that is secured against an asset. Show Answer Correct Answer: A) Long term bonds issued by businesses. 23. Which of the following statements about personal sources of finance is false? A) Often cheaper in the long-term. B) Less 'red tape' or delay in getting the cash. C) Less personal financial risk for the entrepreneur. D) May be harder to raise large amounts. Show Answer Correct Answer: C) Less personal financial risk for the entrepreneur. 24. What of the following is a source of internal finance? A) Selling assets. B) Trade credit. C) A bank loan. D) None of the above. Show Answer Correct Answer: A) Selling assets. 25. Which of the following is not a limitation of equity shares as a source of finance? A) Fluctuating returns. B) Costly source. C) Dilutes the voting power. D) No explicit cost. Show Answer Correct Answer: D) No explicit cost. ← 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books