CBSE Class 11 Business Studies Sources of Business Finance MCQs Set C

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 options

Answer: B

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

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

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

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

Answer: A

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

Answer: B

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

Answer: A

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