Multiple Choice Questions on Sources of Business Finance
Sources of Business Finance Class 11 MCQ Questions are covered in this Article. Sources of Business Finance Class 11 MCQ Test contains 35 questions. Answers to MCQs on Sources of Business Finance Class 11 Business Studies are available at the end of the last question.
| Subject | Business Studies |
| Topic | Sources of Business Finance Class 11 MCQ |
| Category | Business Studies Class 11 MCQs |
These MCQs on sources of business finance have been made for Class 11 students to help check the concept you have learned from detailed classroom sessions and the application of your knowledge. For more MCQs
Sources of Business Finance Class 11 MCQ Business Studies
1. _________is called the lifeblood of any business enterprise:
a) Profit
b) Loss
c) Finance
d) Assets
Answer
Answer: c) Finance
2. What do you mean by business finance:
a) It is the requirement of funds by a business to carry out its various activities.
b) It is the requirement of profits by business to carry out its various activities.
c) It is the requirement of liabilities by a business to carry out its various activities.
d) It is the requirement of customers by business to carry out its various activities.
Answer
Answer: a) It is the requirement of funds by a business to carry out its various activities.
3. At which stage does the need for finance arises in business:
a) For carrying out day to day operations
b) During the purchase of assets
c) As soon as an entrepreneur decides to start a business
d) All of these
Answer
Answer: d) All of these
4. The financial needs of a business can be categorised into_______types:
a) 5
b) 4
c) 2
d) 3
Answer
Answer: c) 2
5. The funds which are required to purchase land, building and furniture comes under:
a) Fixed capital requirement
b) Working capital requirement
c) Further capital requirement
d) Finance capital requirement
Answer
Answer: a) Fixed capital requirement
6. Fixed capital requirement are generally used to purchase_________:
a) Fixed asset
b) Current asset
c) Cash
d) All of the above
Answer
Answer: a) Fixed asset
7. Capital required for purchasing raw material, payment of salaries, wages etc comes under the category of:
a) Working capital requirement
b) Fixed capital requirement
c) Further capital requirement
d) Finance capital requirement
Answer
Answer: a) Working capital requirement
8. On the basis of period funds are classified into_____types:
a) 3
b) 2
c) 4
d) 5
Answer
Answer: a) 3
9. On the basis of ownership funds are classified into_____types:
a) 3
b) 2
c) 4
d) 5
Answer
Answer: b) 2
10. On the basis of source of generation funds are classified into_____types:
a) 2
b) 4
c) 5
d) 3
Answer
Answer: a) 2
Sources of Business Finance Class 11 MCQ Business Studies
11. Trade credit comes under the category of:
a) Short term funds
b) Long term funds
c) Internal sources of funds
d) Owner’s fund
Answer
Answer: a) Short term funds
12. Preference shares and debentures comes under the category of:
a) Short term funds
b) External source of funds
c) Long term funds
d) Both B and C
Answer
Answer: d) Both B and C
13. Which of the following comes under medium-term funds
a) Lease financing
b) Public deposits
c) Bank loans
d) All of the above
Answer
Answer: d) All of the above
14. Which of the following comes under the category of owner’s funds:
a) Equity shares
b) Retained earning
c) Both A and B
d) None of the above
Answer
Answer: c) Both A and B
15. Commercial papers comes under the category of:
a) Owner’s fund
b) Borrowed fund
c) Long term funds
d) Internal sources of funds
Answer
Answer: b) Borrowed fund
16. Which of the following is included inowner’s fund :
a) Capital
b) Profits reinvested in business
c) Retained earnings
d) All of the above
Answer
Answer: d) All of the above
17. Owner’s fund remain invested in the business for a_______duration:
a) Short
b) Very short
c) Long
d) None of the above
Answer
Answer: c) Long
18. ________not required to be refunded during the lifetime of the business:
a) Owner’s fund
b) Borrowed fund
c) Both of these
d) None of these
Answer
Answer: a) Owner’s fund
19. Funds raised through loans or borrowings are called:
a) Owner’s fund
b) Borrowed funds
c) Both of these
d) None of these
Answer
Answer: b) Borrowed funds
20. Borrowed funds include which of the following
a) Retained earnings
b) Trade credit
c) Equity shares
d) None of these
Answer
Answer: b) Trade credit
Sources of Business Finance Class 11 MCQ – Business Studies
21. What is the full form of IDR:
a) International Direct Receipt
b) Indian Depository Receipt
c) International Depository Receipt
d) Indian Direct Receipt
Answer
Answer: b) Indian Depository Receipt
22. Full form of GDR is:
a) Global Decomposite Receipt
b) Global Depository Repayment
c) Global Direct Receipt
d) Global Depository Receipt
Answer
Answer: b) Global Depository Repayment
23. The capital raised by issuing shares is called________:
a) Debentures
b) Public deposits
c) Share capital
d) Bank loans
Answer
Answer: c) Share capital
24. The person holding share of a particular company is called as________of that company:
a) Shareholder
b) Debentureholders
c) Debtors
d) Creditors
Answer
Answer: a) Shareholder
25. Shares are normally of_____types:
a) 3
b) 4
c) 2
d) 1
Answer
Answer: c) 2
26. Ownership capital means the:
a) Capital raised by issue of shares
b) Capital raised from retained earning
c) Capital raised from loans
d) Capital raised from the issue of debentures
Answer
Answer: a) Capital raised by the issue of shares
27. ________holders do not receive a fixed amount of dividend, whereas________holders receive a fixed amount dividend:
a) Equity share; preference share
b) Preference share; equity share
c) Debenture; equity shares
d) Preference shares; debenture
Answer
Answer: a) Equity share; preference share
28. Who is referred to as ‘residual owners’:
a) Preference shareholder
b) Equity shareholders
c) Debenture holder
d) Debtors
Answer
Answer: b) Equity shareholders
29. The liability of equity shareholders is:
a) Unlimited
b) Limited
c) Partially unlimited
d) Partially limited
Answer
Answer: b) Limited
30. Equity capital serves as permanent capital as it is repaid only at the time of_________:
a) Liquidation
b) Winding up
c) Both of these
d) None of the above
Answer
Answer: c) Both of these
Sources of Business Finance Class 11 MCQ Business Studies
31. Mr. A wants regular income from investing in the shares of MNO ltd. In which shares should he invest:
a) Equity shares
b) Preference shares
c) Both of these
d) None of these
Answer
Answer: b) Preference shares
32. ABC ltd wants to issue huge amount of shares to raise its capital but the directors decided not to dilute the control to more people, which shares should they issue:
a) Preference shares
b) Equity shares
c) Both of these
d) None of these
Answer
Answer: a) Preference shares
33. The_______shareholders enjoy a preferential position over_________shareholders:
a) Equity; preference
b) Preference; equity
c) Debenture; equity
d) None of these
Answer
Answer: b) Preference; equity
34. Preference shares resembles:
a) Equity shares
b) Debentures
c) Both of these
c) None of these
Answer
Answer: b) Debentures
35. Portion of net earnings retained in the business for future use:
a) Retained earnings
b) Savings
c) Debentures
d) Assets
Answer
Answer: a) Retained earnings
Class 11 Business Studies MCQs
Term 1 – MCQ of Business Studies Class 11
Part A – Foundations of Business
- Evolution and Fundamentals of Business
- Forms of Business Organisations
- Public, Private and Global Enterprises
- Business Services
- Emerging Modes of Business
- Social Responsibility of Business and Business Ethics
Term 2 – NCERT Business Studies MCQ
Part B – Finance and Trade
- Sources of Business Finance
- Small Business and Entrepreneurship Development
- Internal Trade
- International Business