BUSINESS STUDIES FOR CLASS 11 CHAPTER 8 SOURCES OF BUSINESS FINANCE MCQS ALONG WITH ANSWERS

Free CBSE Business Studies Multiple Choice Questions for Class 11 along with answers, Chapter 8: Sources of Business Finance. Business Studies MCQs for Class 11 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. Industrial Finance Corporation of India (IFCI) was established in _______.

(a) July 1948

(b) July 2001

(c) July 1956

(d) July 1991

Answer: (a) July 1948

2. State Industrial Development Corporations were established by _______.

(a) Ministry of Finance

(b) The different states

(c) Central Government

(d) None of these

Answer: (b) The different states

3. Funds raised through loans or borrowings are ________.

(a) Borrowed funds

(b) Owners equity

(c) Share capital

(d) None of these

Answer: (a) Borrowed funds

4. 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: (a) Owners of the company

5. 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: (d) Loan capital of the company

6. 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: (c) Working capital requirement

7. Expand ICICI.

(a) Industrial Credit and Investment Corporation of India

(b) International Credit and Investment Corporation of India

(c) Indian Credit and Investment Corporation of India

(d) None of these

Answer: (c) Industrial Credit and Investment Corporation of India

8. 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 – American Depositary Receipt

(c) GDR – Global Depository Receipt

(d) None of these

Answer: (c) GDR – Global Depository Receipt

9. _____________ 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: (a) Mahindra and Mahindra

10. When one party grants the right to use the asset to the other party, in return for a periodic payment, it is known as __________.

(a) Lease financing

(b) Factoring

(c) Public deposits

(d) Debts

Answer: (a) Lease Financing

11. 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: (c) Collects the client’s debt or account receivables

12. 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 an issue of shares

(d) Generated within the business

Answer: (d) Generated within the business

13. Under the lease agreement, the lessee gets the right to _____.

(a) Share profits earned by the lessor

(b) Participate in the management of the organisation

(c) Use the asset for a specified period

(d) Sell the assets

Answer: (c) Use the asset for a specified period

14. Money obtained by issue of shares is known as ___________.

(a) Debts

(b) Share capital

(c) Loans

(d) Reserve funds

Answer: (b) Share capital

15. Which of the following is a commercial bank?

(a) State Bank of India

(b) Canara Bank

(d) Punjab National Bank

(d) All of these

Answer: (d) All of these

We trust that the offered Business Studies MCQs for Class 11 with respect to Chapter 8: Sources of Business Finance will help you. Assuming you have any questions with respect to CBSE Class 11 Business Studies, Sources of Business Finance MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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