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Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 19 (25 MCQs)

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1. Firms sell valuable assets and lease them back again. This means that they have capital from the sale of asset as well as the continuing use of these assets.
2. Which of the following is considered a financial instrument?
3. Which sources of finance is most likely to be used by a firm planning to takeover another firm?
4. Short term funds are those funds which are required for a period not exceeding:
5. A trading concern will require more fixed capital as compared to a manufacturing concern.
6. It refers to the ability of a company to pay maturing obligations. The current assets of a company are compared with its current liabilities to determine its paying capacity.
7. Which is the most likely use for Debt factoring?
8. Is the spending by a business on non-current assets such as premises, production equipment and vehicles.
9. Does a Government Grant have to be paid back?
10. A Venture Capitalist / Business Angel specialises in funding risky businesses.
11. What does internal source of finance mean?
12. An advantage that an overdraft has over a bank loan is that:
13. A Venture Capital / Business Angel will expect a share of the profits.
14. Increasing credit terms to costumers are likely to:
15. Is the money invested into a company by shareholders when they buy shares.
16. Funds can be raised through equity issue without creating any charge on the assets of the company.
17. 13 Which of the following will probably not be considered by a business before deciding on the most suitable source of finance? 1) The purpose of the finance-what it will be used for 2) How long the finance is used for 3) The rate of interest on loans 4) The opinions of the workers
18. If a business is required to install safety equipment to prevent workplace injuries, which type of legislation is this an example of?
19. Borrowed fund refers to funds raised through borrowing and loans from financial institutions or banks.
20. The source of finance that is provided by the Owners is called
21. Classify each source of finance as either internal or externalWorking capital
22. Why might retained profit be considered desirable?
23. Money received through equity shares are risky for the companies .....
24. Out of the following, which one is not a feature of owners fund.
25. They are considered owners of the business and have voting rights, entitled to dividends which depend on their share and earnings of the corporation. They are called .....
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