This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 14 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Complete the following statements with appropriate word(s) in the blank spaces:5. In the absence of ..... it is not possible to conceive of a company. A) Debentures. B) Equity shares. C) All the above. D) None of the above. Show Answer Correct Answer: B) Equity shares. 2. Trade credit allows a business to: A) Borrow money from customers. B) Buy now and pay later. C) Sell shares to suppliers. D) Avoid paying for stock altogether. Show Answer Correct Answer: B) Buy now and pay later. 3. Which of the following is NOT a long-term source of finance? A) Equity shares. B) Trade credit. C) Debentures. D) Term loans. Show Answer Correct Answer: B) Trade credit. 4. Complete the following statements with appropriate word(s) in the blank spaces:6. The rate of dividend is pre-decided on ..... A) Equity shares. B) Preference shares. C) All the above. D) None of the above. Show Answer Correct Answer: B) Preference shares. 5. 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) Factoring. C) Public Deposits. D) Debts. Show Answer Correct Answer: A) Lease Financing. 6. An external source of finance that is not available to unincorporated businesses A) Retained profit. B) Share issue. C) Overdraft. D) None of the above. Show Answer Correct Answer: B) Share issue. 7. What is the primary role of financial management in an organization? A) Managing Human Resources. B) Managing Physical Assets. C) Managing Financial Resources. D) Managing Marketing Resources. Show Answer Correct Answer: C) Managing Financial Resources. 8. Which is the back bone of business? A) Assets. B) Liablities. C) Place. D) Finance. Show Answer Correct Answer: D) Finance. 9. Which of the following is NOT usually considered a personal source of finance. A) Savings. B) Redundancy payments. C) Crowdfunding. D) Credit card. Show Answer Correct Answer: C) Crowdfunding. 10. 2 When a business expands it usually needs finance for which one of the following reasons? 1) To pay for increased working capital 2) To pay back shareholders 3) To pay the government a grant 4) To provide a loan to the bank A) . B) . C) . D) . Show Answer Correct Answer: A) . 11. What is the primary function of a financial institution? A) Issuing stocks. B) Providing financial services. C) Regulating financial markets. D) Analyzing market trends. Show Answer Correct Answer: B) Providing financial services. 12. What is a disadvantage of using owners' funds? A) It means you have no savings. B) It can lead to personal conflicts. C) It can take a long time to arrange. D) They can be recalled immediately. Show Answer Correct Answer: A) It means you have no savings. 13. ICICI was established in ..... A) 1975. B) 1955. C) 1985. D) 1965. Show Answer Correct Answer: B) 1955. 14. What makes shareholders more likely to invest? A) Decreasing share prices. B) High staff turnover. C) Increasing dividends. D) Low profit margins. Show Answer Correct Answer: C) Increasing dividends. 15. Which is an example of an external source of finance? A) Owner's capital. B) Hire Purchase. C) Retained profits. D) Sale of assets. Show Answer Correct Answer: B) Hire Purchase. 16. Sources of funds can be categorised as: A) Period basis. B) Source of generation basis. C) Ownership basis. D) All of these. Show Answer Correct Answer: D) All of these. 17. Trade credit is generated to those customers who have reasonable amount of A) Funds in their bank. B) Financial standing and goodwill. C) Weakness. D) Zero balance in their a/c. Show Answer Correct Answer: B) Financial standing and goodwill. 18. Which of the following is not an external source of finance? A) Issue of debentures. B) Borrowing from commercial banks. C) Accepting public deposits. D) Retained earnings. Show Answer Correct Answer: D) Retained earnings. 19. What the Finance Department not do? A) Forecasting cash flow. B) Producing accounting information for managers. C) Hold Annual General Meetings. D) Take important decisions of finance. Show Answer Correct Answer: C) Hold Annual General Meetings. 20. Which of the following is an example of debt financing?a) Selling company sharesb) Taking a bank loanc) Using personal savingsd) Reinvesting profits A) Taking a bank loan. B) Selling company shares. C) Using personal savings. D) Reinvesting profits. Show Answer Correct Answer: A) Taking a bank loan. 21. What capital out of the following is better with reference to control A) Equity share capital. B) Preference share capital. C) Debt capital. D) None of these. Show Answer Correct Answer: C) Debt capital. 22. Debentureholders are called as? A) Employees of the company. B) Owners of the company. C) Creditors of the company. D) None of these. Show Answer Correct Answer: C) Creditors of the company. 23. Which one of the following expressions is true? A) Profit = TC+TR. B) Average cost = FC /Q. C) TR = P x FC. D) Profit = TR-TC. Show Answer Correct Answer: D) Profit = TR-TC. 24. Net cash flow is calculated as Total outflows minus Total inflows? A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 25. What is the other name for Retained Earnings? A) Internal financing. B) Ploughing back of profits. C) Self financing. D) All of these. Show Answer Correct Answer: D) All of these. ← 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