This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 29 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An external source of finance that involves selling trade receivables A) Debt factoring. B) Mortgage. C) Debenture. D) None of the above. Show Answer Correct Answer: A) Debt factoring. 2. ..... is an example of short term finance. A) Shares. B) Debentures. C) Trade Credit. D) None of these. Show Answer Correct Answer: C) Trade Credit. 3. Firms can raise cash by selling assets they they no longer require-normally these are non-current assets. Examples would be a business selling land or buildings that they no longer utilize. A) Retained Profit. B) Sale of Unwanted Assets. C) Sale and Leaseback. D) None of the above. Show Answer Correct Answer: B) Sale of Unwanted Assets. 4. "The money invested by an individual or group that is willing to take the risk of funding a new business in exchange for an agreed share of the profits" best describes which long term source of finance? A) Venture capital. B) Share capital. C) Loans. D) Retained profit. Show Answer Correct Answer: A) Venture capital. 5. What is the process of obtaining money from a bank or financial institution with the agreement to pay it back with interest at a later date called? A) Stealing. B) Renting. C) Borrowing. D) Donating. Show Answer Correct Answer: C) Borrowing. 6. What are the factors which affect the method of finance chosen? A) How long is the money needed for, what is the money needed for, and type and size of the business. B) What risk is involved, how much is needed, and cost of finance. C) What risk is involved, type and size of the business, and cost of finance. D) How long is the money needed for, what is the money needed for, and how much is needed. Show Answer Correct Answer: C) What risk is involved, type and size of the business, and cost of finance. 7. International source of fiannce is ..... A) ADR AND GDR. B) FDI. C) BOTH. D) NONE. Show Answer Correct Answer: C) BOTH. 8. A long-term external source of finance used to purchase land or buildings A) Debt factoring. B) Mortgage. C) Debenture. D) None of the above. Show Answer Correct Answer: B) Mortgage. 9. What is a characteristic of debentures? A) They don't require repayment. B) They are short-term loans. C) They must be repaid after a specified period. D) They give voting rights. Show Answer Correct Answer: C) They must be repaid after a specified period. 10. There's tax benefit in ..... A) Equity shares. B) Debentures. C) Preference shares. D) None of these. Show Answer Correct Answer: B) Debentures. 11. Which source of finance does not incur interest? A) Bank loan. B) Overdraft. C) Retained profit. D) Trade credit. Show Answer Correct Answer: C) Retained profit. 12. Which is an advantage of leasing as a source of finance? A) The asset becomes business property immediately. B) Maintenance is handled by the leasing company. C) It's cheaper than purchasing. D) No monthly payments required. Show Answer Correct Answer: B) Maintenance is handled by the leasing company. 13. What does the Consumer Prices Index (CPI) measure? A) Changes in average prices over time. B) The total value of goods produced. C) The number of unemployed people. D) The amount of government spending. Show Answer Correct Answer: A) Changes in average prices over time. 14. What is the term used for the money that a business has to pay back to its creditors? A) Credit. B) Profit. C) Investment. D) Debt. Show Answer Correct Answer: D) Debt. 15. Complete the following statements with appropriate word(s) in the blank spaces:8. Retained Earning is called ..... A) Public Deposits. B) Self Financing. C) All the above. D) None of the above. Show Answer Correct Answer: B) Self Financing. 16. Finance is concerned with the following, except? A) Raising Money ( Financing). B) Investing Money. C) Operating Cash. D) None of the above. Show Answer Correct Answer: C) Operating Cash. 17. Expand GDR A) Government Direct Receipts. B) Gross Domestic Revenue. C) Gross Domestic Receipts. D) Global Depository Receipts. Show Answer Correct Answer: D) Global Depository Receipts. 18. Which of the following is an external source of finance? A) Retained earnings. B) Equity shares. C) Preference shares. D) Debentures. Show Answer Correct Answer: D) Debentures. 19. The financial requirements of an enterprise do not end with the procurement of fixed assets. No matter how small or large a business is, it needs funds for its day-to-day operations. This is known as ..... of an enterprise. A) Fixed Capital. B) Working Capital. C) Long-term Capital. D) Short-term Capital. Show Answer Correct Answer: B) Working Capital. 20. What is the formula for gross profit? A) Revenue-cost of sales. B) Total costs/output. C) Selling price x sales volume. D) Gross profit/Sales revenue x100. Show Answer Correct Answer: A) Revenue-cost of sales. 21. Which external source of business finance involves obtaining funds from suppliers or vendors without having to pay for the goods or services immediately? A) Venture capital. B) Personal savings. C) Bank loan. D) Trade credit. Show Answer Correct Answer: D) Trade credit. 22. What is the main advantage of equity financing? A) Fixed repayment schedule. B) No interest obligation. C) Tax benefits. D) High risk for investors. Show Answer Correct Answer: B) No interest obligation. 23. Which of the following is an example of external finance for a limited company? A) Retained profits of the company. B) Selling shares. C) Sale of assets no longer used in the business. D) Reducing stocks. Show Answer Correct Answer: B) Selling shares. 24. Which of the following may be preferred for avoiding dilution of control A) Equity shares. B) Debentures. C) Both 1 and 2. D) None of these. Show Answer Correct Answer: B) Debentures. 25. The working capital of a business is given by A) Capital employed. B) Net assets. C) Non-current assets. D) Net current asset. Show Answer Correct Answer: D) Net current asset. ← 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