CBSE Class 11 (Commerce) Sources of Business Finance — practice questions
79 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CBSE Class 11 (Commerce) Sources of Business Finance in the app →Which term describes the funds a business needs to carry out its activities?Finance is often called what of any business?Funds required for a period exceeding 5 years are classed as which kind of source?A seasonal need lasting under twelve months is met from which type of source?Medium-term finance is needed for more than one year but less than how long?Which source is classed as long-term finance?Long-term finance is generally needed to acquire which of these?Short-term financing is most common for financing which kind of assets?On the basis of ownership, funds are classified as owner's funds and what?Which two are the main sources of owner's funds?Which funds need not be refunded during the life of the business?Which source provides borrowed funds?Borrowed funds carry what kind of burden on the business?Funds generated within the business, like ploughed-back profits, are called what?Finance provided by suppliers, lenders and investors is which type of source?What is the other name for retained earnings as a source of finance?Which part of net earnings is called retained earnings?The amount of retained earnings available depends mainly on which policy?Which is a merit of retained earnings?A limitation of excessive ploughing back of profits is that shareholders may get what?Why is retained earnings an uncertain source of funds?Credit given by one trader to another for buying goods is called what?In the buyer's records, trade credit appears as which of these?Trade credit is commonly used as which kind of finance?Which firms depend more on trade credit because other funds are hard to get?Easy trade credit may push a firm into which risky practice?Under factoring, who handles credit control and debt collection from the buyer?Factoring is a source of which type of funds?What are the two methods of factoring?Under which factoring does the factor bear the entire credit risk?Under recourse factoring, the client is not protected against which risk?In India, factoring appeared on the financial scene in which period?Which body's initiatives brought factoring to India?In a lease, who is the owner of the asset?The periodic payment made by the lessee for using an asset is called what?At the end of the lease period, the asset goes to whom?Lease finance is more common for which assets that quickly become obsolete?Lease financing provides funds without causing which of these?Funds raised by companies directly from the public are called what?Which document does a company issue as acknowledgment of a public deposit?The acceptance of public deposits is regulated by which body?Why does public deposit financing not dilute company control?Which kind of firm usually finds public deposits hard to raise?Commercial paper is best described as what kind of instrument?In which year was commercial paper introduced in India?Who can generally issue commercial paper, being unsecured?Commercial paper is regulated by which authority?Why is commercial paper highly liquid?A limitation of commercial paper is that its maturity cannot be what if the firm is in trouble?The capital of a company is divided into small units called what?What are the two types of shares normally issued by a company?A company issues 1,00,000 shares of Rs. 10 each. What total value is raised?Equity shares represent which kind of capital of a company?Why are equity shareholders called risk bearers?Equity shareholders are also referred to as what?The liability of equity shareholders is limited to what?When is equity capital repaid, as it is permanent capital?Which shareholders get a fixed rate of dividend before equity holders?Preference shares resemble which instrument as they bear a fixed return?Do preference shareholders generally enjoy voting rights?Preference shares that can be turned into equity shares are called what?Preference shares that carry forward unpaid dividends are called what?Which preference shares share in the surplus after equity dividend is paid?A limitation of preference shares for the company is that dividend is not what?A debenture is an acknowledgment of what by a company?Debenture holders are what of the company?Debenture issue suits a company whose sales and earnings are how?Zero interest debentures give investors a return equal to what?Commercial banks mainly provide which kind of loans to firms?Bank loans may be repaid in lump sum or in what?Financial institutions set up by governments are also called what?Financial institutions suit which need of a firm?Inter Corporate Deposits are made by one company with whom?Depository receipts issued by a company in the USA are called what?A foreign firm raises funds in India through which instrument?Which was the first company to issue an IDR in India, in June 2010?FCCBs are equity linked debt securities issued in what?Which of these is an international development bank?Why is it wise to use a combination of finance sources?