This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 16 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Out of the following which one is a type of intercorporate deposit. A) Three month deposit. B) Call deposit. C) Six month deposit. D) All of these. Show Answer Correct Answer: D) All of these. 2. Name one external source of business finance. A) Bank loans. B) Personal savings. C) Crowdfunding. D) Venture capital. Show Answer Correct Answer: A) Bank loans. 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 A) . B) . C) . D) . Show Answer Correct Answer: A) . 4. What is the safest way to pay for an item to avoid debt? A) Cash. B) Check. C) Credit. D) Debit. Show Answer Correct Answer: A) Cash. 5. Which deposit will give a flexibility for our future A) Private deposit. B) Public deposits. C) Financial company deposits. D) Personal saving. Show Answer Correct Answer: B) Public deposits. 6. For which of the following source of the finance, a company is required to mortage its assets? A) Debenture. B) Equity shares. C) Retained earnings. D) Preference shares. Show Answer Correct Answer: A) Debenture. 7. Which type of financing involves obtaining funds from banks, financial institutions, or other businesses? A) Crowdfunding. B) Venture capital financing. C) Debt financing. D) Equity financing. Show Answer Correct Answer: C) Debt financing. 8. Money obtained by issue of shares is known as ..... A) Debts. B) Share Capital. C) Loans. D) Reserve Funds. Show Answer Correct Answer: B) Share Capital. 9. Which is a characteristic of crowdfunding? A) Guaranteed returns. B) Only available to corporations. C) Requires collateral. D) Voluntary donations from many people. Show Answer Correct Answer: D) Voluntary donations from many people. 10. Owner's fund remains permanently invested, whereas borrowed funds is not a permanent source of investment. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 11. What are the disadvantages of external sources of business finance? A) Higher costs, loss of control, potential conflicts of interest, and increased financial risk. B) Limited access to funds, lack of flexibility, limited growth opportunities. C) Difficulty in obtaining funds, increased dependency, limited decision-making power. D) Higher interest rates, limited repayment options, increased financial burden. Show Answer Correct Answer: A) Higher costs, loss of control, potential conflicts of interest, and increased financial risk. 12. The method of raising shirt term finance through accounts receivable credit offered by commercial banks is A) Installment Credit. B) Trade Credit. C) Factoring. D) None. Show Answer Correct Answer: C) Factoring. 13. When a company issues commercial paper, which of the following statements is true? A) It is a secured financial instrument. B) It is used for long-term financing. C) It is issued to meet short-term liabilities. D) It requires approval from shareholders. Show Answer Correct Answer: C) It is issued to meet short-term liabilities. 14. What are the different sources of long, medium, and short-term finance? A) Government grants only. B) Both internal and external sources. C) External sources only. D) Internal sources only. Show Answer Correct Answer: B) Both internal and external sources. 15. What shareholders get in return on investment? A) Interest. B) Rent. C) Debentures. D) Dividend. Show Answer Correct Answer: D) Dividend. 16. ..... is commenly used by business organisations as a source of short term financing A) Lease financing. B) ADRs. C) Trade credit. D) None of these. Show Answer Correct Answer: C) Trade credit. 17. ....provide a preferential right to the share holders with respect to payment of earnings and repayment of capital. A) Debentures. B) Equity shares. C) Preference shares. D) Bonds. Show Answer Correct Answer: C) Preference shares. 18. How much is the liability of equity shareholders? A) Unlimited. B) Zero. C) Limited. D) None of these. Show Answer Correct Answer: C) Limited. 19. This source of business finance is used for issue of bonus shares: A) Equity Share. B) Preference Share. C) Retained Earnings. D) Debentures. Show Answer Correct Answer: C) Retained Earnings. 20. Which source of financing provides the business with working capital for day-to-day operations? A) Equity shares. B) Trade credit. C) Debentures. D) Retained earnings. Show Answer Correct Answer: B) Trade credit. 21. Which of the following is a short term source of finance? A) Shares. B) Debentures. C) Trade Credit. D) All of these. Show Answer Correct Answer: C) Trade Credit. 22. What is an advantage of an overdraft? A) There is never interest. B) You can pay in smaller installments. C) They are quick and easy to arrange. D) You don't have to pay it back. Show Answer Correct Answer: C) They are quick and easy to arrange. 23. Are assets that a business expects to hold for one year or more. Examples include property and vehicles. A) Capital. B) Share Capital. C) Loan Capital. D) Asset. E) Non-current Asset. Show Answer Correct Answer: E) Non-current Asset. 24. A possible drawback to an entrepreneur of using personal savings to finance a new business enterprise is: A) The amount will need to be repaid with interest. B) The amount available may be limited. C) It is an expensive form of finance. D) The entrepreneur may lose control of the business. Show Answer Correct Answer: B) The amount available may be limited. 25. What are the factors influencing financial choice? A) Use to which finance is to be put, cost, and amount required. B) Size of existing borrowing, flexibility, and legal structure. C) Cost, amount required, and legal structure. D) Flexibility, size of existing borrowing, and use to which finance is to be put. Show Answer Correct Answer: A) Use to which finance is to be put, cost, and amount required. ← 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