This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 7 Sources Of Business Finance – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 9 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A loan that is secured on a property is called a A) Mortgage. B) Overdraft. C) Credit Card. D) Government Grant. Show Answer Correct Answer: A) Mortgage. 2. Preference shareholders get preference over equity shares for A) Payment of dividend. B) Voting. C) Participation in management. D) None of these. Show Answer Correct Answer: A) Payment of dividend. 3. Which of the following is an example of a cash outflow? A) Interest Received. B) Cash from trade receivable. C) Fresh injection of capital. D) Payment for raw materials. Show Answer Correct Answer: D) Payment for raw materials. 4. What is the most likely source of finance for buying a new IT system? A) Mortgage. B) Factoring. C) A bank loan. D) None of the above. Show Answer Correct Answer: C) A bank loan. 5. What is an example of an internal source of business finance? A) Venture capital. B) Retained earnings. C) Crowdfunding. D) Bank loan. Show Answer Correct Answer: B) Retained earnings. 6. Which of the following constitute a source of long term finance A) Equity shares. B) Debentures. C) Retained earnings. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. What is the term used for the money left over after all expenses have been paid? A) Debt. B) Loss. C) Revenue. D) Profit. Show Answer Correct Answer: D) Profit. 8. Which of the following is not a working capital requirement: A) Fund required for purchase of raw material. B) Fund required for payment of salary to employees. C) Fund required for purchase of Long Term Assets. D) Fund required for purchase of stock. Show Answer Correct Answer: C) Fund required for purchase of Long Term Assets. 9. What is a key factor affecting the choice of finance source? A) The cost of procurement and utilization of funds. B) The location of the business. C) The number of employees. D) The color of the company logo. Show Answer Correct Answer: A) The cost of procurement and utilization of funds. 10. Which ource of finance is preferred by investors who want fixed income at less risk A) Debentures. B) Equity shares. C) Preference shares. D) Bank loan. Show Answer Correct Answer: A) Debentures. 11. Which of these sources of finance is internal? A) Retained profit. B) Mortgage. C) Venture capital. D) Crowd funding. Show Answer Correct Answer: A) Retained profit. 12. What is an advantage of friends & family loan? A) There will be little or no interest. B) You can pay in smaller installments. C) They take a long time to arrange. D) You don't have to pay it back. Show Answer Correct Answer: A) There will be little or no interest. 13. What are internal sources of finance? A) Selling company assets. B) Funds generated within the organization. C) Borrowing from external sources. D) Donations from customers. Show Answer Correct Answer: B) Funds generated within the organization. 14. What is the ability of a firm to meet its short term debts known as? A) Running costs. B) Capital expenditure. C) Working capital. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 15. What is the main disadvantage of trade credit as a source of finance? A) May lead to shortage of stock and loss of sales. B) Costs related to storage of stock is reduced. C) The business may not have any old or obsolete assets. D) The business may not get cash discounts. Show Answer Correct Answer: D) The business may not get cash discounts. 16. A stockholder's share of the company's profit A) Dividend. B) Par Value. C) Share. D) Yield. Show Answer Correct Answer: A) Dividend. 17. Which of the following is an example of revenue expenditure? A) Paying staff wages. B) Buying a new truck. C) Extending the factory. D) Purchasing a machine. Show Answer Correct Answer: A) Paying staff wages. 18. What is debt financing? A) Debt financing is a method of raising capital by borrowing money from lenders or issuing bonds. B) Debt financing is a method of raising capital by receiving grants from the government. C) Debt financing is a method of raising capital by investing in stocks. D) Debt financing is a method of raising capital by selling company shares. Show Answer Correct Answer: A) Debt financing is a method of raising capital by borrowing money from lenders or issuing bonds. 19. This source of business finance is the portion of profit which is invested in business, rather than distributing is as dividend to shareholders. A) Equity Share. B) Preference Share. C) Retained Earnings. D) Debentures. Show Answer Correct Answer: C) Retained Earnings. 20. ..... are unsecured short-term deposits made by a company with another company. A) Inter Corporate Deposits. B) Fixed Deposits. C) Public Deposits. D) Corporate Deposits. Show Answer Correct Answer: A) Inter Corporate Deposits. 21. It is profit kept in the company rather than paid out to shareholders as a dividend. A) Net Profit. B) Venture Capital. C) Operating profit. D) Overdraft. E) Retained Profits. Show Answer Correct Answer: E) Retained Profits. 22. KINDS OF BUSINESS FINANCE A) A.FIXED CAPITALACCUMILATED CAPITAL. B) B.CURRENT CAPITAL ASSET ACUMULATED. C) C.NON OF THEM. D) None of the above. Show Answer Correct Answer: A) A.FIXED CAPITALACCUMILATED CAPITAL. 23. Retained Profits, Sale of Unwanted Assets, Sale and Leaseback A) Internal sources of finance. B) External sources of finance. C) All the above. D) None of the above. Show Answer Correct Answer: A) Internal sources of finance. 24. The ordinary shares of a company are delivered to the depository bank, which in turn issues the depository receipts, known as ..... A) Commercial banks. B) ADR. C) None of these. D) GDR. Show Answer Correct Answer: D) GDR. 25. Which of the following is a stable source of business finance: A) Equity Share. B) Preference Share. C) Debentures. D) Bonds. Show Answer Correct Answer: A) Equity Share. ← 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 10Class 11 Business Studies Chapter 7 Sources Of Business Finance Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books