Financial Management Quiz-1

Sources of Business Finance Quiz-1

Quiz

 

1. Mr. Raj Narayan wants regular income from investing in the shares of MNO ltd. In which shares should he invest:
   1.   Preference shares
   2.   Equity shares
   3.   None of these
   4.   Both of the above
2. Who is referred to as ‘residual owners’:
   1.   Debenture holder
   2.   Preference shareholder
   3.   Debtors
   4.   Equity shareholders
3. ________holders do not receive a fixed amount of dividend, whereas________holders receive a fixed amount dividend:
   1.   Equity share; preference share
   2.   Preference shares; debenture
   3.   Debenture; equity shares
   4.   Preference share; equity share
4. Capital required for purchasing raw material, payment of salaries, wages etc comes under the category of:
   1.   Fixed capital requirement
   2.   Further capital requirement
   3.   Working capital requirement
   4.   Finance capital requirement
5. _________is called the lifeblood of any business enterprise:
   1.   Profit
   2.   Loss
   3.   Assets
   4.   Finance
6. Full form of GDR is:
   1.   Global Depository Repayment
   2.   Global Decomposite Receipt
   3.   Global Direct Receipt
   4.   Global Depository Receipt
7. The person holding share of a particular company is called as________of that company:
   1.   Debtors
   2.   Debentureholders
   3.   Creditors
   4.   Shareholder
8. Borrowed funds include which of the following
   1.   Trade credit
   2.   Retained earnings
   3.   Equity shares
   4.   None of these
9. Equity capital serves as permanent capital as it is repaid only at the time of_________:
   1.   Liquidation
   2.   Winding up
   3.   Both of these
   4.   None of the above
10. Which of the following comes under medium-term funds
    1.   Public deposits
    2.   Lease financing
    3.   Bank loans
    4.   All of the above
11. What do you mean by business finance:
    1.   It is the requirement of profits by business to carry out its various activities.
    2.   It is the requirement of funds by a business to carry out its various activities.
    3.   It is the requirement of customers by business to carry out its various activities.
    4.   It is the requirement of liabilities by a business to carry out its various activities.
12. The funds which are required to purchase land, building and furniture comes under:
    1.   Working capital requirement
    2.   Fixed capital requirement
    3.   Finance capital requirement
    4.   Further capital requirement
13. Which of the following comes under the category of owner’s funds:
    1.   Retained earning
    2.   Equity shares
    3.   Both of the above
    4.   None of the above
14. The_______shareholders enjoy a preferential position over_________shareholders:
    1.   Debenture; equity
    2.   Equity; preference
    3.   Preference; equity
    4.   None of these
15. Trade credit comes under the category of:
    1.   Long term funds
    2.   Owner’s fund
    3.   Short term funds
    4.   Internal sources of funds
16. 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:
    1.   Equity shares
    2.   Preference shares
    3.   Both of the above
    4.   None of these
17. ________not required to be refunded during the lifetime of the business:
    1.   Borrowed fund
    2.   Owner’s fund
    3.   Both of these
    4.   None of these
18. Ownership capital means the:
    1.   Capital raised from loans
    2.   Capital raised from the issue of debentures
    3.   Capital raised by issue of shares
    4.   Capital raised from retained earning
19. What is the full form of IDR:
    1.   Indian Direct Receipt
    2.   Indian Depository Receipt
    3.   International Direct Receipt
    4.   International Depository Receipt
20. Funds raised through loans or borrowings are called:
    1.   Owner’s fund
    2.   Borrowed funds
    3.   Both of these
    4.   None of these