This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 28 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A mortgage is a long term source of finance. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 2. Which of the following statements about bank loans is not true? A) Usually used for large amounts of money that need to be paid back over a longer time-frame. B) Interest rates make the loan more expensive. C) Easy to get. D) Usually cheaper than consistently using a bank overdraft. Show Answer Correct Answer: C) Easy to get. 3. What is short-term finance mainly used for? A) Buying new buildings. B) Maintaining positive cash flow. C) Funding long-term expansion. D) Paying shareholder dividends. Show Answer Correct Answer: B) Maintaining positive cash flow. 4. Euity shareholders are called? A) Owners of the company. B) Partners of the company. C) Excecutives of the company. D) Guardian of the company. Show Answer Correct Answer: A) Owners of the company. 5. The purchaser pays regular fix payments until the full amount is paid and then ownership is transferred A) Leasing. B) Bank Overdraft. C) Hire Purchase. D) Venture Capital. Show Answer Correct Answer: C) Hire Purchase. 6. What is trade credit? A) A loan from a bank. B) Credit extended by one trader to another. C) Investment in shares. D) A type of lease agreement. Show Answer Correct Answer: B) Credit extended by one trader to another. 7. Which of the these sources of finance is least useful for dealing with cash-flow issues? A) Trade Credit. B) Crowdfunding. C) Overdraft. D) Owner's Capital. Show Answer Correct Answer: B) Crowdfunding. 8. Which of the following sources of finance does not have interest added. A) Overdraft. B) Owners' Capital. C) Mortgage. D) Bank Loan. Show Answer Correct Answer: B) Owners' Capital. 9. Which of these sources of finance is likely to charge the most interest? A) Trade credit. B) Retained profit. C) Bank loan. D) Overdraft. Show Answer Correct Answer: D) Overdraft. 10. What decision involves make-up of the right-hand side of the balance sheet A) Asset management. B) Investment. C) Financing. D) None. Show Answer Correct Answer: C) Financing. 11. The act of receiving investment from owners. A) Equity financing. B) Debt financing. C) Bank overdraft. D) Bank loans. Show Answer Correct Answer: A) Equity financing. 12. Is an amount of money provided to a business for a stated purpose in return for a payment in the form of interest charges. A) Bank Loan. B) Overdraft. C) Venture Capital. D) Government Grant. E) Creditors. Show Answer Correct Answer: A) Bank Loan. 13. Short Term sources of finance usually require money to be repaid within ..... A) 1 week. B) 1 month. C) 6 months. D) 1 year. Show Answer Correct Answer: D) 1 year. 14. 7 Which one of the following is an advantage of micro-finance for an entrepreneur setting up a business? 1) There are no interest costs so the business will be more profitable 2) Very large loans can be obtained 3) The finance does not have to be repaid 4) Finance is provided to people who could not usually obtain a bank loan A) . B) . C) . D) . Show Answer Correct Answer: A) . 15. Your financial records are not confidential, so you have to show them to banks or investors A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 16. Which of the following is an example of an internal source of business finance? A) Retained earnings. B) Stock issuance. C) Venture capital. D) Bank loan. Show Answer Correct Answer: A) Retained earnings. 17. Preference share holders are called A) Partners of the company. B) Owners of the compnay. C) Executives of the company. D) Guardians of the company. Show Answer Correct Answer: B) Owners of the compnay. 18. What is batch production? A) A manufacturing process in which components or goods are produced in groups (batches). B) A method of producing a single good/service at a time. C) A process where output is made primarily using labour. D) A system where items arrive just before they are needed. Show Answer Correct Answer: A) A manufacturing process in which components or goods are produced in groups (batches). 19. This long-term source of finance comes from the person who owns the business. A) Venture capital. B) Retained profit. C) Crowd funding. D) Personal savings. Show Answer Correct Answer: D) Personal savings. 20. ADRs/GDRs can be issued by A) Only listed companies. B) Listed and un listed companies. C) None of the above. D) Only companies listed on BSE. Show Answer Correct Answer: A) Only listed companies. 21. What source of finance often requires no interest, equity, security or repayment? A) Bank loan. B) Crowdfunding. C) Taking on a new partner. D) Overdraft. Show Answer Correct Answer: B) Crowdfunding. 22. Whichof thefollowing is adrawbackfor anentrepreneursetting up a business as asole trader? A) Profit is shared. B) Financialaccountsarekeptprivate. C) Limited liability. D) Unlimitedliability. Show Answer Correct Answer: D) Unlimitedliability. 23. Complete the following statements with appropriate word(s) in the blank spaces:1. The relationship between the size of business and the need for its finance is ..... A) Direct. B) Inverse. C) Positive. D) None of the above. Show Answer Correct Answer: A) Direct. 24. Which of the following instrument is also known as Hybrid Security? A) Equity shares. B) Debentures. C) Public deposits. D) Preference shares. Show Answer Correct Answer: D) Preference shares. 25. Which of the following is not an internal source of business finance? A) Stock issuance. B) Venture capital. C) Bank loans. D) Personal savings. Show Answer Correct Answer: C) Bank loans. ← 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