MCQ Chapter 8 Sources of Business Finance Class 11 Business Studies

MCQ Questions Class 11

Please refer to Sources of Business Finance MCQ Questions Class 11 Business Studies below. These MCQ questions for Class 11 Business Studies with answers have been designed as per the latest NCERT, CBSE books, and syllabus issued for the current academic year. These objective questions for Sources of Business Finance will help you to prepare for the exams and get more marks.

Sources of Business Finance MCQ Questions Class 11 Business Studies

Please see solved MCQ Questions for Sources of Business Finance in Class 11 Business Studies. All questions and answers have been prepared by expert faculty of standard 11 based on the latest examination guidelines.

MCQ Questions Class 11 Business Studies Sources of Business Finance

Question. Expand ADR
(a) American Depository Receipts
(b) American Direct Receipts
(c) American Domestic Receipts
(d) None of the above

Answer

A

Question. _________ is an example of short term finance
(a) Trade Credit
(b) Debenture
(c) Share
(d) None of the above

Answer

A

Question. Expand GDR
(a) Global Depository Receipts
(b) Gross Domestic Receipts
(c) Government Direct Receipts
(d) None of the above

Answer

A

Question. A person who purchases the common stock of a corporation is known as:
(a) Preferred stockholder
(b) Creditor
(c) Bondholder
(d) Common stockholder

Answer

D

Question. Commercial papers can be issued only by large and creditworthy companies because
(a) It is protected by the Government
(b) It is an Unsecured Debt
(c) It is Fully Secured Debt
(d) None of the above

Answer

B

Question. State Industrial Development Corporations were established by _______
(a) Ministry of Finance
(b) the Different States
(c) Central Government
(d) None of the above

Answer

B

Question. When one party grants the other party the right to use the asset in return for a periodic payment, it is known as __________
(a) Lease Financing
(b) Public Deposits
(c) Debts
(d) Factoring

Answer

A

Question. Funds raised through loans and borrowings are ________
(a) Owners Equity
(b) Share Capital
(c) Borrowed funds
(d) None of the above

Answer

C

Question. Internal sources of capital are those that are
(a) Generated through outsiders such as suppliers
(b) Generated through the issue of shares
(c) Generated through a loan from commercial banks
(d) Generated within the business

Answer

D

Question. Debentures represent
(a) Fixed capital of the company
(b) Fluctuating capital of the company
(c) Loan capital of the company
(d) Permanent capital of the company

Answer

C

Question. The maturity period of a commercial paper usually ranges from
(a) 120 to 365 days
(b) 60 to 90 days
(c) 90 to 364 days
(d) 20 to 40 days

Answer

C