Teaching Business Studies Sources Of Business Finance Question Bank

done MCQ - Business Finance Total Questions - 45

• question_answer1)
  Production and distribution services of the goods are not possible without
  A)
  Human source                            done clear
  B)
  land done clear
  C)
                     Finance                                     done clear
  D)
  All of these done clear
  View Solution play_arrow

• question_answer2)
  Business finance is concerned with the                  
  A)
  Acquisition of capital funds done clear
  B)
                     Utilisation of capital funds done clear
  C)
                     Both a and b done clear
  D)
                     None of the above done clear
  View Solution play_arrow

• question_answer3)
  What is called as blood of business?
  A)
  Material                                     done clear
  B)
  Labour done clear
  C)
                     Finance                                     done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer4)
  Business finance is the capital that supports ......... of entrepreneurs.
  A)
  Creation                                    done clear
  B)
  growth done clear
  C)
                     Sustainability                             done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer5)
  Business finance is used in
  A)
  Small business                            done clear
  B)
  large business done clear
  C)
                     All business                                done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer6)
  Business finance is required for
  A)
  Starting business                         done clear
  B)
  growth of business done clear
  C)
                     Payments of debts                      done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer7)
  Financial needs of true business can be categorised as
  A)
  Fixed capital requirements done clear
  B)
                     Working capital requirements done clear
  C)
                     Both a and b done clear
  D)
                     None of the above done clear
  View Solution play_arrow

• question_answer8)

  Consider the following statements.

  I. Finance is the blood for business

  II. Business required blood to operate its activities.

  Which of the statements given above is/are correct?

  A)
  Only I                                       done clear
  B)
  Only II done clear
  C)
                     Both I and II                              done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer9)

  Consider the following statements.

  I. Business finance is required in each type of business.

  II. Business finance includes all types of funds that are required to run a business.

  Which of the statements given above is/are correct?

  A)
  Only I                                       done clear
  B)
  Only II done clear
  C)
                     Both I and II                              done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer10)
  Equity shares come under
  A)
  Owner’s funds                            done clear
  B)
  Borrowed funds done clear
  C)
                     Both a and b                              done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer11)
  Debenture has comparatively ......... risk to equity.
  A)
  Higher                                       done clear
  B)
  lower done clear
  C)
                     Equal                                        done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer12)
  Which source provides benefit in tax?
  A)
  Debentures                                 done clear
  B)
  Equity shares done clear
  C)
                     Preference shares                        done clear
  D)
  Retained profit done clear
  View Solution play_arrow

• question_answer13)

  Consider the following statements.

  I. As a source of funds debenture is better than shares.

  II. The suitability of any source of funds depends on various factors.

  Which of the statements given above is/are correct?

  A)
  Only I                                       done clear
  B)
  Only II done clear
  C)
                     Both I and II                              done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer14)

  Consider the following statements.

  I. Equity shares provide long-term and permanent capital.

  II. Income to investors of equity shares are uncertain and irregular.

  Which of the statements given above is/are correct?

  A)
  Only I                                       done clear
  B)
  Only II done clear
  C)
                     Both I and II                              done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer15)
  If in any year dividend is not received it get accumulated in case of
  A)
  Cumulative preference shares done clear
  B)
                     Non-cumulative preference shares done clear
  C)
                     Equity shares done clear
  D)
                     All of the above done clear
  View Solution play_arrow

• question_answer16)
  Which type of preference shares can be converted into equity shares?
  A)
  Participating, preference shares done clear
  B)
                     Non- cumulative preference shares done clear
  C)
                     Convertible preference shares done clear
  D)
                     All of the above done clear
  View Solution play_arrow

• question_answer17)
  Which of the following source of funds is not paid till the life of company?
  A)
  Equity shares                              done clear
  B)
  Preference share done clear
  C)
                     Loan from bank                          done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer18)
  Which type of bonds do not carry any interest?
  A)
  Corporate bonds                         done clear
  B)
  Sovereign bonds done clear
  C)
                     Convertible bonds                       done clear
  D)
  Zero-coupon bonds done clear
  View Solution play_arrow

• question_answer19)
  Sovereign bonds are issued in India by
  A)
  Central Government                    done clear
  B)
  State Government done clear
  C)
                     RBI                                           done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer20)
  Match the following

  List I		List II
  A.	Retained profits	1.	Can be converted in shares
  B.	Public deposits	2.	Owner’s funds
  C.	Debentures	3.	Unreliable source
  D.	Zero-coupon bonds	4.	Type of bonds

  Codes
  A)
          A\[\to \]1, B\[\to \]3, C\[\to \]2, D\[\to \]4 done clear
  B)
         A\[\to \]3, B\[\to \]1, C\[\to \]2, D\[\to \]4 done clear
  C)
         A\[\to \]1, B\[\to \]3, C\[\to \]2, D\[\to \]4 done clear
  D)
         A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done clear
  View Solution play_arrow

• question_answer21)
  Match the following

  List I			List II
  A.	Equity Shares	1.	For impoverished borrowers
  B.	Debentures	2.	Provides tax benefits
  C.	Public Deposits	3.	No fix burden
  D.	Microcredit	4.	Directly received from public

  Codes
  A)
  A\[\to \]4, B\[\to \]2, C\[\to \]1, D\[\to \]3 done clear
  B)
  A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 done clear
  C)
  A\[\to \]3, B\[\to \]1, C\[\to \]2, D\[\to \]4 done clear
  D)
  A\[\to \]1, B\[\to \]3, C\[\to \]2, D\[\to \]4 done clear
  View Solution play_arrow

• question_answer22)
  Match the following

  List I		List II
  A.	CARE	1.	Promoted in 1991
  B.	CREDIT RATING AGENCIES	2.	Set up by Onida finance
  C.	ICRA	3.	Commence operations in 1993
  D.	ONICRA	4.	Impose a healthy discipline on borrowers

  Codes
  A)
          A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 done clear
  B)
         A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 done clear
  C)
         A\[\to \]3, B\[\to \]1, C\[\to \]2, D\[\to \]4 done clear
  D)
         A\[\to \]2, B\[\to \]1, C\[\to \]3, D\[\to \]4 done clear
  View Solution play_arrow

• question_answer23)
  Match the following

  List I		List II
  A.	Deep Bond	1.	RBI Public sector
  B.	Corporate Bond	2.	Public sector units
  C.	Sovereign Bond	3.	Zero-coupon bond
  D.	Convertible Bond	4.	Full or partially convertible

  Codes
  A)
  A\[\to \]3, B\[\to \]2, C\[\to \]1, D\[\to \]4 done clear
  B)
         A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 done clear
  C)
         A\[\to \]3, B\[\to \]1, C\[\to \]2, D\[\to \]4 done clear
  D)
         A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 done clear
  View Solution play_arrow

• question_answer24)
  Trade credit is provided by
  A)
  Buyer                                        done clear
  B)
  Supplier done clear
  C)
                     Bank done clear
  D)
  RBI done clear
  View Solution play_arrow

• question_answer25)
  In trade credit buyer pay the amount to supplier
  A)
  On the spot                                done clear
  B)
  in advance done clear
  C)
                     At later date                               done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer26)
  Feature of trade credit
  A)
  No formal legal instruments done clear
  B)
                     Internal arrangement between buyer and seller done clear
  C)
                     Spontaneous source of financing done clear
  D)
                     All of the above done clear
  View Solution play_arrow

• question_answer27)
  Commercial banks provides short-term finance in the form of
  A)
  Overdrafts                                  done clear
  B)
  cash credits done clear
  C)
                     Discounting of bills                      done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer28)
  Finance for purchasing plant and machinery is
  A)
  Short-term                                 done clear
  B)
  long-term done clear
  C)
                     Both a and b                              done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer29)
  NABARD provides finance to
  A)
  Every industry done clear
  B)
                     Agriculture and village industries done clear
  C)
                     Both a and b done clear
  D)
                     None of the above done clear
  View Solution play_arrow

• question_answer30)
  National Housing Bank provides finance specially for
  A)
  Housing                                     done clear
  B)
  consumer goods done clear
  C)
                     Both a and b                              done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer31)
  ICICI was set up in
  A)
  1955                                         done clear
  B)
  1965 done clear
  C)
                     1975                                         done clear
  D)
  1985 done clear
  View Solution play_arrow

• question_answer32)
  SIDBI is a subsidiary of
  A)
  ICICI                                         done clear
  B)
  IDBI done clear
  C)
                     NHB                                         done clear
  D)
  NABARD done clear
  View Solution play_arrow

• question_answer33)
  SIDBI aims to empower
  A)
  Micro enterprises                         done clear
  B)
  Small enterprises done clear
  C)
                     Medium enterprises                      done clear
  D)
  All of the above done clear
  View Solution play_arrow

• question_answer34)
  SIDBI helps in
  A)
  Economic growth done clear
  B)
                     Employment generation done clear
  C)
                     Balanced regional development done clear
  D)
                     All of the above done clear
  View Solution play_arrow

• question_answer35)
  In May 2002 ICICI was merged with
  A)
  IDBI                                          done clear
  B)
  HDFC done clear
  C)
                     ICICI Bank                                done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer36)
  ICICI as a development financial institution
  A)
  Still exist done clear
  B)
                     Now does not exist done clear
  C)
                     Exist but will close soon done clear
  D)
                     None of the above done clear
  View Solution play_arrow

• question_answer37)
  ONICRA has been set up to rate the credit-worthiness of
  A)
  Corporate consumers done clear
  B)
                     non-corporate consumers done clear
  C)
                     Both a and b done clear
  D)
                     None of the above done clear
  View Solution play_arrow

• question_answer38)
  What are the use of credit rating agencies?
  A)
  Imposing healthy discipline on borrowers done clear
  B)
                     Reducing interest cost for highly rated companies done clear
  C)
                     Encouraging greater information disclosure done clear
  D)
                     All of the above done clear
  View Solution play_arrow

• question_answer39)
  Credit rating is done by institutions which are
  A)
  specialised                                  done clear
  B)
  expert done clear
  C)
                     Reputed                                     done clear
  D)
  All of these done clear
  View Solution play_arrow

• question_answer40)
  UTI was set up in
  A)
  1965                                         done clear
  B)
  1963 done clear
  C)
                     1961 done clear
  D)
  1970 done clear
  View Solution play_arrow

• question_answer41)
  UTI provides to investors
  A)
  Gainful employment of savings done clear
  B)
                     Diversifying risks done clear
  C)
                     Dividends done clear
  D)
                     All of the above done clear
  View Solution play_arrow

• question_answer42)

  Consider the following statements.

  I. To reduce the risk shares should be preferred.

  II. On equity shares there is no fixed burden of paying interest.

  Which of the statements given above is/are correct?

  A)
  Only I                                       done clear
  B)
  Only II done clear
  C)
                     Both I and II                              done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer43)

  Consider the following statements.

  I. Equity provides permanent capital to the company.

  II. Investors in equity shares get higher return and bear higher risks.

  Which of the statements given above is/are correct?

  A)
  Only I                                       done clear
  B)
  Only II done clear
  C)
                     Both I and II                              done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer44)

  Consider the following statements.

  I. Retained earnings is readily available.

  II. Retained earnings provides unlimited finance.

  Which of the statements given above is/are correct?

  A)
  Only I                                       done clear
  B)
  Only II done clear
  C)
                     Both I and II                              done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer45)

  Consider the following statements.

  I. Retained earnings is sum of the all profits retained.

  II. Retained earnings is reduced by losses.

  Which of the statements given above is/are correct?

  A)
  Only I                                       done clear
  B)
  Only II done clear
  C)
                     Both I and II                              done clear
  D)
  None of these done clear
  View Solution play_arrow