This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 3 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Equity shareholders are the: A) Owners of the company. B) Partners of the company. C) Executive of the company. D) Guardian of the company. Show Answer Correct Answer: A) Owners of the company. 2. What is the primary role of the financial manager in an organization's fund flow? A) Allocating resources to marketing activities. B) Allocating financial resources to different departments. C) Managing human resources within the organization. D) Making operational decisions. Show Answer Correct Answer: B) Allocating financial resources to different departments. 3. 15 A business has applied for a bank loan to buy new computers. A bank manager is most likely to ask all of the following questions before granting the loan except:1) How big is the loan needed? 2) How many loans has the business already obtained? 3) How long will the loan be needed for? 4) How powerful are the computers? A) . B) . C) . D) . Show Answer Correct Answer: A) . 4. What is NOT a source of Internal finance? A) Retained profit. B) Sale of existing assets. C) Issue of shares. D) All are sources of Internal finance. Show Answer Correct Answer: C) Issue of shares. 5. On the basis of period funds are classified into ..... types: A) 3. B) 2. C) 4. D) 5. Show Answer Correct Answer: A) 3. 6. What type of capital is required for purchasing fixed assets? A) Working capital. B) Fixed capital. C) Retained earnings. D) Trade credit. Show Answer Correct Answer: B) Fixed capital. 7. Which of the following is classed as a short-term source of finance? A) Trade credit. B) Venture Capital. C) Personal savings. D) Retained profit. Show Answer Correct Answer: A) Trade credit. 8. Though banks have started extending loans for ..... Periods, generally such loans are used for ..... Periods. A) Long, short. B) Long, medium. C) Short, long. D) Medium, short. Show Answer Correct Answer: A) Long, short. 9. What is revenue expenditure? A) Money spent on monthly expenses. B) Money spent on hour to hour expenses. C) Money spent on day to day expenses. D) None of the above. Show Answer Correct Answer: C) Money spent on day to day expenses. 10. Retained earnings does not involve any cost in the form of A) Dividend. B) Interest. C) Floatation cost. D) All of these. Show Answer Correct Answer: D) All of these. 11. Financial institutions aim at promoting the industrial development of a country, these are also called A) Children bank. B) Development bank. C) Urban bank. D) Rural bank. Show Answer Correct Answer: B) Development bank. 12. Which source of finance does not need to be repaid? A) Bank overdrafts. B) Debentures. C) Government grants. D) Trade credit. Show Answer Correct Answer: C) Government grants. 13. Acid test ratio is a more severe test of liquidity because A) It excludes costs. B) It excludes stock. C) It includes costs. D) It includes stock. Show Answer Correct Answer: B) It excludes stock. 14. Who is the person in charge of a business's financial planning? A) Financial Manager. B) Financial Overseer. C) Financial Accountant. D) Mr. Morrise and his Basic Math Skills. Show Answer Correct Answer: A) Financial Manager. 15. While evaluating capital investment proposal, the time value of money is considered in case of, A) ARR method. B) Discounted Cash flow method. C) Pay-back method. D) All. Show Answer Correct Answer: B) Discounted Cash flow method. 16. Under the lease agreement, the lessee gets the right to A) Share profits earned by the lesser. B) Participate in the management of the organization. C) Use the asset for a specified period. D) Sell the assets. Show Answer Correct Answer: C) Use the asset for a specified period. 17. Long Term sources of finance are for when the time needed to pay the money back is more than ..... A) 6 months. B) 1 year. C) 5 years. D) 10 years. Show Answer Correct Answer: B) 1 year. 18. Which of the following is called ''Risk Capital" ? A) Debentures. B) Preference shares. C) Equity shares. D) Retained earnings. Show Answer Correct Answer: A) Debentures. 19. What factors should be considered when choosing between equity and debt financing? A) Company size, location, and industry sector. B) Cost of capital, control and ownership, risk tolerance, financial flexibility, and stage and growth potential of the business. C) Personal credit score, business plan, and revenue projections. D) Interest rates, market conditions, and industry trends. Show Answer Correct Answer: B) Cost of capital, control and ownership, risk tolerance, financial flexibility, and stage and growth potential of the business. 20. Commercial Banks do not provide loans in the form of: A) Overdraft. B) Term loans. C) Reserves. D) Cash Credits. Show Answer Correct Answer: C) Reserves. 21. Which source of finance is preferred by investors who want fixed income at lesser risk A) Debentures. B) Equity shares. C) Preference shares. D) Bank loan. Show Answer Correct Answer: A) Debentures. 22. If total cost is US$ 350 000 000 and output is 100 000 units what is average cost? A) US$ 100 000. B) US$ 35. C) US$ 350. D) US$ 3500. Show Answer Correct Answer: D) US$ 3500. 23. The maturity period of a commercial paper usually ranges from A) 20 to 40 days. B) 60 to 90 days. C) 120 to 365 days. D) 90 to 364 days. Show Answer Correct Answer: D) 90 to 364 days. 24. Which of the following is true in the context of owner's fund? A) The amount is contributed by owners. B) The amount is borrowed from banks. C) The rate of interest is fixed on funds. D) None of the above. Show Answer Correct Answer: A) The amount is contributed by owners. 25. Debenture holders A) Own a part of the company in which they hold debentures. B) Are paid a return from the profits of the company. C) Receive payments from companies before any shareholders. D) Are represented as current liabilities on the company's balance sheet. Show Answer Correct Answer: C) Receive payments from companies before any shareholders. ← 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 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 10Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books