MCQ Questions for Class 11 Business Studies Chapter 8 Sources of Business Finance with Answers

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.

Online Education for 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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