This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 25 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who is the owner of the company A) Equity share holders. B) Preference share holders. C) Debenture holders. D) Directors. Show Answer Correct Answer: A) Equity share holders. 2. Which source of finance is considered an internal source? A) Public deposits. B) Retained earnings. C) Debentures. D) Bank loans. Show Answer Correct Answer: B) Retained earnings. 3. What are the disadvantages of internal sources of business finance? A) Limited funds, potential strain on cash flow, and lack of external expertise or resources. B) Difficulty in obtaining large amounts of capital, increased financial burden, and limited access to new ideas or innovation. C) Lack of diversification, limited growth opportunities, and potential conflicts of interest. D) High interest rates, limited flexibility, and increased risk. Show Answer Correct Answer: A) Limited funds, potential strain on cash flow, and lack of external expertise or resources. 4. ADRs can be listed and traded on a Stock Exchange of A) USA. B) Russia. C) India. D) England. Show Answer Correct Answer: A) USA. 5. Retained Profits is an example of: A) Internal Finance. B) External Finance. C) Unsensible Finance. D) Long-Term Finance. Show Answer Correct Answer: A) Internal Finance. 6. Which of the following is an appropriation of profit A) Interest on Loan. B) Depreciation on fixed assets. C) Dividend on shares. D) Salary of employees. Show Answer Correct Answer: C) Dividend on shares. 7. Which of the following is an example of an external source of business finance?a) Selling company sharesb) Using retained earningsc) Reinvesting profitsd) Selling company assets A) Selling company shares. B) Using personal savings. C) Issuing corporate bonds. D) Taking out a bank loan. Show Answer Correct Answer: A) Selling company shares. 8. Which of the following is the least likely source of funds for a non-profit organization? A) Fund-raising events. B) Charitable donations. C) Brand recognition. D) Sponsorship deals. Show Answer Correct Answer: C) Brand recognition. 9. Which of the following is a source of borrowed fund? A) Equity shares. B) Global Depository Receipts. C) Inter Corporate Deposits. D) Indian Depository Receipts. Show Answer Correct Answer: C) Inter Corporate Deposits. 10. Which of the following is not a limitation of Commercial Banks as a source of finance? A) Funds are generally available for short periods. B) Procedure of obtaining funds slightly difficult. C) Charge on assets. D) Complex procedure. Show Answer Correct Answer: D) Complex procedure. 11. Which of the following is NOT a reason why a business needs money? A) To start the business. B) To expand the business. C) To deal with a negative cash-flow problem. D) To increase prices of its products. Show Answer Correct Answer: D) To increase prices of its products. 12. How is capacity utilisation calculated? A) (Current output / Maximum possible output) x 100. B) (Total sales / Total costs) x 100. C) (Number of employees / Total output) x 100. D) (Maximum output / Current output) x 100. Show Answer Correct Answer: A) (Current output / Maximum possible output) x 100. 13. The financial institutions are established by A) State govt. B) Central govt. C) Both state and central govt. D) Municipal corporation. Show Answer Correct Answer: C) Both state and central govt. 14. Which of the following enjoy voting rights on various issues of the company? A) Equity Share Holders. B) Preference Share Holders. C) Debenture Holders. D) Account Holders. Show Answer Correct Answer: A) Equity Share Holders. 15. A person who is not necessarily the owner of the business but has a stake on how the business is performing is called ..... A) Stakeholder. B) Stockholder. C) Partners. D) Manager. Show Answer Correct Answer: A) Stakeholder. 16. Name the concept that is termed as 'Ploughing back of profit' and regarded as important sources of owner's fund. A) Retained Earnings. B) Preference Share. C) Debenture. D) Zero Coupon Bond. Show Answer Correct Answer: A) Retained Earnings. 17. Are short-term debts of a business, usually repaid within one year. A) Working capital. B) Current assets. C) Current liabilities. D) None of the above. Show Answer Correct Answer: C) Current liabilities. 18. What is the difference between long-term and short-term financing? A) Long-term financing is for a shorter duration than short-term financing. B) Short-term financing is for a longer duration than long-term financing. C) Long-term financing is used for immediate financial needs, while short-term financing is for future financial needs. D) Short-term financing is used for immediate financial needs, while long-term financing is for future financial needs. Show Answer Correct Answer: D) Short-term financing is used for immediate financial needs, while long-term financing is for future financial needs. 19. Debenturs represent A) Fixed capital of the company. B) Permanent capital of the company. C) Fluctuating capital of the company. D) Loan capital of the company. Show Answer Correct Answer: D) Loan capital of the company. 20. What do you mean by retained profits? A) Profit which occur during the year. B) Profit kept in the business after the owners have taken their share. C) All the above. D) None of the above. Show Answer Correct Answer: B) Profit kept in the business after the owners have taken their share. 21. What is a key disadvantage of venture capital? A) It is interest-free. B) It reduces the founder's control. C) It requires no risk from the investor. D) It does not provide guidance. Show Answer Correct Answer: B) It reduces the founder's control. 22. Are individuals or organizations to whom the business owes money. A) Bank Loan. B) Overdraft. C) Venture Capital. D) Government Grant. E) Creditors. Show Answer Correct Answer: E) Creditors. 23. Which of the statements about retained profits is false? A) You have unlimited amounts of money available. B) Shareholders and employees could be frustrated because there is less profit to be 'shared out'. C) You do not have to pay interest. D) You are free to use it for any purpose. Show Answer Correct Answer: A) You have unlimited amounts of money available. 24. What is a key feature of microfinance? A) Only available to large corporations. B) Requires substantial collateral. C) Provides small sums to developing businesses. D) Only offers long-term loans. Show Answer Correct Answer: C) Provides small sums to developing businesses. 25. Money received from the goverment, local authority or EU to fund a project A) Venture Capital. B) Debenture. C) Mortgage. D) Grant. Show Answer Correct Answer: D) Grant. ← 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