This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 21 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The opening cash balances for a business was US$ 35700 and the net cash flow was negative US$ 11500 the clsoing balance is: A) US$ 24200. B) US$ 11500. C) US$ 37200. D) None of the above. Show Answer Correct Answer: A) US$ 24200. 2. Sue Yu and Partners is a solicitors wanting to expand and buy new premises. Which source of finance is most suitable? A) Mortgage. B) Trade Credit. C) Selling assets. D) Bank loan. Show Answer Correct Answer: A) Mortgage. 3. Convertible debentures offer investors the option to: A) Convert equity into cash. B) Convert shares into debt. C) Convert debentures into equity shares. D) Receive fixed dividends. Show Answer Correct Answer: C) Convert debentures into equity shares. 4. Under the factoring arrangement, the factor A) Produces and distributes the goods or services. B) Makes the payment on behalf of the client. C) Collects the client's debt or account receivables. D) Transfer the goods from one place to another. Show Answer Correct Answer: C) Collects the client's debt or account receivables. 5. Finance departments record all transactions such as what? A) Payments and revenue. B) Transport and Infrastructure. C) All the above. D) None of the above. Show Answer Correct Answer: A) Payments and revenue. 6. Cost of sales is the same as: A) Fixed costs. B) Variable costs. C) Total costs. D) Average costs. Show Answer Correct Answer: B) Variable costs. 7. Abel and Sonya are in partnership. They own a pizza takeaway business. They need $ 10 000 to purchase new ovens so that they can expand their business. They rent their premises. Which of the following sources of finance should the partners use to finance the purchase of their new ovens? A) Hire purchase. B) Sale of non-current assets. C) Share issue. D) Debenture. Show Answer Correct Answer: A) Hire purchase. 8. Give an example of an internal source of business finance. A) Retained earnings. B) Government grant. C) Venture capital. D) Bank loan. Show Answer Correct Answer: A) Retained earnings. 9. 3 Which of the following is an example of internal finance for a limited company? 1) Selling shares 2) Selling debentures 3) Obtaining a loan 4) Selling off inventories A) . B) . C) . D) . Show Answer Correct Answer: A) . 10. When a business makes a profit, it can use it as a source of finance. This is known as: A) Retained profit. B) Sales revenue. C) Borrowed capital. D) Operating expenses. Show Answer Correct Answer: A) Retained profit. 11. Which one of the following is the external source of finance A) Retained earning. B) Equity shares. C) Preferece shares. D) Debentures. Show Answer Correct Answer: D) Debentures. 12. Is the cash a business has for its day-to-day spending. A) Working capital. B) Current assets. C) Current liabilities. D) None of the above. Show Answer Correct Answer: A) Working capital. 13. What is a disadvantage of a friends and family loan? 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: B) It can lead to personal conflicts. 14. ADRs stands for-? A) American Domestic Receipts. B) American Direct Receipts. C) American Depository Receipts. D) American Domestic Revenue. Show Answer Correct Answer: C) American Depository Receipts. 15. Which of the following is a permanent source of finance? A) Long-term loan. B) Retained profit. C) Overdraft. D) Sale of stock. Show Answer Correct Answer: B) Retained profit. 16. What do you mean by business finance: A) It is the requirement of funds by a business to carry out its various activities. B) It is the requirement of profits by business to carry out its various activities. C) It is the requirement of liabilities by a business to carry out its various activities. D) It is the requirement of customers by business to carry out its various activities. Show Answer Correct Answer: A) It is the requirement of funds by a business to carry out its various activities. 17. What is the primary goal of financial management? A) Maximizing the number of employees in an organization. B) Maximizing the use of physical assets. C) Maximizing the organization's financial performance and value. D) Maximizing customer satisfaction. Show Answer Correct Answer: C) Maximizing the organization's financial performance and value. 18. What is the role of financial institutions in business finance? A) To provide short-term loans only. B) To conduct market surveys. C) To offer long-term and medium-term financing. D) To manage company assets. Show Answer Correct Answer: C) To offer long-term and medium-term financing. 19. Trade creditor is a person or business to whom your business owes money, this is a A) Medium term source of finance. B) Long term source of finance. C) Short term source of finance. D) None of the above. Show Answer Correct Answer: C) Short term source of finance. 20. An investor with least risk taking ability must go for ..... A) Equity Shares. B) Preference Shares. C) Debentures. D) None of these. Show Answer Correct Answer: C) Debentures. 21. What is Financing? A) The act of receiving investment from owners. B) The act of borrowing funds. C) The act of providing funds for business activities. D) The act of operating cash. Show Answer Correct Answer: C) The act of providing funds for business activities. 22. 8 An advantage to a business of leasing computers rather than buying them outright is that:1) the loan never has to be repaid 2) the computers will never go out of date 3) the total cost of leasing is always cheaper than buying the computers 4) the company does not have to find a large cash sum to buy the computers A) . B) . C) . D) . Show Answer Correct Answer: A) . 23. ..... is not included in owner's capital A) Equity share capital. B) Long term debt. C) Preference share capital. D) Retained profit. Show Answer Correct Answer: B) Long term debt. 24. Which of the following comes under the category of owner's funds: A) Equity shares. B) Retained earning. C) Both Equity & retained earning. D) None of the above. Show Answer Correct Answer: C) Both Equity & retained earning. 25. Life insurance corporation was set up in ..... A) 1965. B) 1956. C) 1975. D) 1985. Show Answer Correct Answer: B) 1956. ← 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