Check the below Online Education NCERT MCQ Questions for Class 11 Business Studies Chapter 8 Sources of Business Finance with Answers Pdf free download. MCQ Questions for Class 11 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Sources of Business Finance Class 11 Business Studies MCQs Questions with Answers to help students understand the concept very well.
Formation of a Company Class 11 MCQs Questions with Answers
Sources Of Business Finance Class 11 MCQ Question 1.
Internal sources of capital are those that are
(a) generated through outsiders such as suppliers
(b) generated through loans from commercial banks
(c) generated through issue of shares
(d) generated within the business
Answer
Answer: (d) generated within the business
Sources Of Business Finance MCQ Chapter 8 Class 11 Question 2.
Under the factoring arrangement, the factor
(a) Produces and distributes the goods or services
(b) Makes the payment on behalf of the client
(c) Collects the client’s debt or account receivables
(d) Transfer the goods from one place to another
Answer
Answer: (c) Collects the client’s debt or account receivables
MCQ On Sources Of Finance With Answers Chapter 8 Class 11 Question 3.
Under the lease agreement, the lessee gets the right to
(a) Share profits earned by the lessor
(b) Participate in the management of the organization
(c) Use the asset for a specified period
(d) Sell the assets
Answer
Answer: (c) Use the asset for a specified period
MCQ Questions For Class 11 Business Studies Chapter 8 Question 4.
ADRs are issued in
(a) Canada
(b) China
(c) India
(d) USA
Answer
Answer: (d) USA
MCQ On Sources Of Business Finance Chapter 8 Class 11 Question 5.
The term ‘redeemable’ is used for
(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits
Answer
Answer: (b) Commercial paper
Sources Of Finance MCQ Chapter 8 Class 11 Question 6.
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) Factoring
(c) Public Deposits
(d) Debts
Answer
Answer: (a) Lease Financing
MCQ Sources Of Business Finance Class 11 Chapter 8 Question 7.
Money obtained by issue of shares is known as ___________
(a) Debts
(b) Share Capital
(c) Loans
(d) Reserve Funds
Answer
Answer: (b) Share Capital
MCQ Of Sources Of Business Finance Chapter 8 Class 11 Question 8.
_____________ was the first company in India to issue convertible zero interest debentures in January 1990
(a) Mahindra and Mahindra
(b) Adani Enterprise
(c) Tata Motors
(d) Reliance Limited
Answer
Answer: (a) Mahindra and Mahindra
Source Of Business Finance Class 11 MCQ Chapter 8 Question 9.
Which of the following is a commercial bank?
(a) All of these
(b) Canara bank
(d) Punjab National Bank
(d) State Bank of India
Answer
Answer: (a) All of these
Question 10.
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
Answer
Answer: (d) GDR
Question 11.
Unit Trust of India was established by ___________
(a) ICICI
(b) State Bank Group
(c) Indian Government
(d) HDFC Bank
Answer
Answer: (c) Indian Government
Question 12.
ICICI was established in _________________
(a) 1975
(b) 1955
(c) 1985
(d) 1965
Answer
Answer: (b) 1955
Question 13.
Expand ICICI
(a) None of these
(b) International Credit and Investment Corporation of India
(c) Indian Credit and Investment Corporation of India
(d) Industrial Credit and Investment Corporation of India
Answer
Answer: (c) Industrial Credit and Investment Corporation of India
Question 14.
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
Answer
Answer: (d) 90 to 364 days
Question 15.
Debentures represent
(a) Fixed capital of the company
(b) Permanent capital of the company
(c) Fluctuating capital of the company
(d) Loan capital of the company
Answer
Answer: (d) Loan capital of the company
Question 16.
Public deposits are the deposits that are raised directly from
(a) The public
(b) The directors
(c) The auditors
(d) The owners
Answer
Answer: (a) The public
Question 17.
Funds required for purchasing current assets is an example of
(a) Fixed capital requirement
(b) Ploughing back of profits
(c) Working capital requirement
(d) Lease financing
Answer
Answer: (c) Working capital requirement
Question 18.
Equity shareholders are called
(a) Owners of the company
(b) Partners of the company
(c) Executives of the company
(d) Guardian of the company
Answer
Answer: (a) Owners of the company
Question 19.
Investors who want steady income may not prefer ____________
(a) None of these
(b) Debentures
(c) Equity Shares
(d) Bonds
Answer
Answer: (c) Equity Shares
Question 20.
Dividend is paid only on ___________
(a) Loans
(b) Debentures
(c) Bonds
(d) Shares
Answer
Answer: (d) Shares
Question 21.
Funds raised through loans or borrowings are ________
(a) Borrowed funds
(b) Owners Equity
(c) None of these
(d) Share Capital
Answer
Answer: (a) Borrowed funds
Question 22.
GDRs can be converted into shares _____________
(a) At any time
(b) After 5 years
(c) After 10 years
(d) After one year
Answer
Answer: (a) At any time
Question 23.
State Industrial Development Corporations were established by _______
(a) Ministry of Finance
(b) None of these
(c) Central Government
(d) Different States
Answer
Answer: (d) Different States
Question 24.
Life insurance corporation was set up in ________
(a) 1965
(b) 1956
(c) 1975
(d) 1985
Answer
Answer: (b) 1956
Question 25.
Industrial Finance Corporation of India (IFCI) was established in _______
(a) July, 1948
(b) July, 2001
(c) July, 1956
(d) July, 1991
Answer
Answer: (a) July, 1948
One Mark Questions
1. Mention any one source of Business Finance.
Answer
Answer: Owners fund
2. Mention any one type of shares.
Answer
Answer: Equity Share
3. Give one merits of Equity shares.
Answer
Answer: Equity shares holders enjoy the limited liability.
4. State any one type of preference shares.
Answer
Answer: Cumulative preference shares
5. State any one type of Debentures.
Answer
Answer: Secured debentures
6. Mention any one sources of owner’s fund.
Answer
Answer: Equity Share
7. Mention any one type of Financial Institutions.
Answer
Answer: Industrial Finance Corporation of India.
8. Expand ADR.
Answer
Answer: American Depository Receipts
9. Expand GDR.
Answer
Answer: Global Depository Receipts
10. Expand IDR.
Answer
Answer: Indian Depository Receipts
11. Expand ICD.
Answer
Answer: Inter Corporate Deposit
12. Expand EXIM Bank.
Answer
Answer: Export Import bank
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