This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 20 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. TIME DEPOSITS: A) A.Money in saving accounts. B) B.Payments for Accounts Payabl. C) C.Non of them. D) None of the above. Show Answer Correct Answer: A) A.Money in saving accounts. 2. What is share capital? A) Money raised by selling assets. B) Money raised from bank borrowing. C) Money raised through selling shares. D) Money borrowed from suppliers. Show Answer Correct Answer: C) Money raised through selling shares. 3. ..... was the first company in India to issue convertible zero interest debentures in January 1990 A) Mahindra and Mahindra. B) Adani Enterprise. C) Tata Motors. D) Reliance Limited. Show Answer Correct Answer: A) Mahindra and Mahindra. 4. What is the formula for calculating sales revenue? A) Selling price x sales volume. B) Total costs/output. C) Revenue-cost of sales. D) Gross profit/Sales revenue x100. Show Answer Correct Answer: A) Selling price x sales volume. 5. Which of the following is an advantage to an entrepreneur of using venture capital to secure finance for a business start-up? A) 100% of profits are always retained by the entrepreneur. B) Control is never lost within the business. C) Large amounts of finance are usually available. D) The venture capitalist funds will never need repaying. Show Answer Correct Answer: C) Large amounts of finance are usually available. 6. What is the main advantage of using retained earnings? A) It involves high costs. B) It provides operational freedom. C) It requires external approval. D) It is a temporary source of funds. Show Answer Correct Answer: B) It provides operational freedom. 7. Dividend is paid only on ..... A) Loans. B) Debentures. C) Bonds. D) Shares. Show Answer Correct Answer: D) Shares. 8. Debenture is an acknowledgment of A) Securities. B) Shares. C) Bonds. D) Debts. Show Answer Correct Answer: D) Debts. 9. Which of the following best describes finance? A) Funds for a business. B) Customers for a business. C) Profits for a business. D) None of the above. Show Answer Correct Answer: A) Funds for a business. 10. ..... are debt instrument that does not carry a specific rate of interest, but issued at a heavy discount A) Debentures. B) Equity shares. C) Bonds. D) None of these. Show Answer Correct Answer: C) Bonds. 11. With which one of the following sources of finance, is the term redeemable associated? A) Global Depository Receipt. B) Equity Shares. C) Public Deposits. D) Debentures. Show Answer Correct Answer: D) Debentures. 12. What type of business finance is required to increase inventory without having cash in hand A) Retained Earning. B) Trade Credit. C) Lease Financing. D) Factoring. Show Answer Correct Answer: B) Trade Credit. 13. Case study:Apple plans to develop a prototype for an iPhones with a flexible display. Which of the following sources of finance would be most appropriate? A) Retained profits. B) Selling shares. C) Crowdfunding. D) Bank loan. Show Answer Correct Answer: A) Retained profits. 14. In the flow of funds within an organization, what are the typical sources of funds? A) Sales revenue, investment income, and loans. B) Employee salaries, marketing expenses, and rent. C) Manufacturing equipment, office supplies, and vehicles. D) Customer orders, supplier invoices, and taxes. Show Answer Correct Answer: A) Sales revenue, investment income, and loans. 15. How many years does it take to be considered a short term credit? A) 3 years. B) 2 years. C) 1 year. D) Your grandfather in laws age. Show Answer Correct Answer: C) 1 year. 16. What is an advantage of a business using owner's capital as a source of finance? A) Very low rate of interest. B) It will bring new skills to the business. C) It doesn't need repaying. D) Repayment is always spread over a period time. Show Answer Correct Answer: C) It doesn't need repaying. 17. The sources that provide funds for a period exceeding 5 years is called A) A)Long term. B) B)Medium term. C) C)Short term. D) None of the above. Show Answer Correct Answer: A) A)Long term. 18. What is the significance of working capital to a business? A) It helps in reducing the cost of production. B) It ensures the availability of funds for business activities. C) It helps in managing everyday expenses and prevents the business from becoming illiquid. D) It is used for expanding the business to new locations. Show Answer Correct Answer: C) It helps in managing everyday expenses and prevents the business from becoming illiquid. 19. GDR can not be issued in which of the following country? A) Canada. B) India. C) USA. D) China. Show Answer Correct Answer: B) India. 20. Which of the following is not a feature of an optimal capital structure? A) Flexibility. B) Safety. C) Profitability. D) Control. Show Answer Correct Answer: A) Flexibility. 21. Under which of the following conditions the working capital requirement of a business will not be high. A) When it sells goods on credit. B) When it sells goods in cash. C) When it maintains high levels of inventory. D) All of the above. Show Answer Correct Answer: B) When it sells goods in cash. 22. A firm with slow sales turnover, credit sales or a firm during peak season will require ..... working capital A) More. B) Less. C) All the above. D) None of the above. Show Answer Correct Answer: A) More. 23. VENTURE CAPITALISTS are avilable for ..... A) High risk units. B) Technical units. C) Institutional units. D) All of them. Show Answer Correct Answer: D) All of them. 24. What are the main costs involved in making and selling goods or services? A) Raw materials, labour costs, and marketing and distribution costs. B) Labour costs, electricity and power, and interest charges. C) Marketing and distribution costs, interest charges, and raw materials. D) Electricity and power, raw materials, and labour costs. Show Answer Correct Answer: A) Raw materials, labour costs, and marketing and distribution costs. 25. Maximises the value of firm is A) Risk. B) Minimum. C) Maximum. D) Optimum. Show Answer Correct Answer: D) Optimum. ← 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