Sources of Business finance Quiz-2

Sources of Business finance Quiz-2

Quiz

 

1. Which one of the following is a short term source of finance?
   1.   Debentures
   2.   Commercial Paper
   3.   Equity Shares
   4.   Loans from financial Institutions
2. Which companies can raise funds through Public Deposits?
   1.   Public Companies
   2.   Old Companies
   3.   New Companies
   4.   Both b and c
3. In lease financing, the owner of the assets is called the
   1.   Lessee
   2.   Lessor
   3.   Lender
   4.   Buyer
4. A merit of retained earnings as a source of finance is that it may lead to ____________ in the market price of equity shares of a company
   1.   Increase
   2.   Decrease
   3.   Fall
   4.   None of these
5. What is a source of internal financing or self-financing?
   1.   Trade Credit
   2.   Factoring
   3.   Retained Earnings
   4.   Lease Financing
6. Regulation of Commercial Papers comes under the purview of
   1.   Central Govt.
   2.   State Govt.
   3.   RBI
   4.   SBI
7. Who are termed as creditors of the company?
   1.   Equity shareholders
   2.   Preference shareholders
   3.   Debenture holders
   4.   All of these
8. Which of the following is/are the sources for raising borrowed funds?
   1.   Retained Earnings
   2.   Issue of Debentures
   3.   Public Deposits
   4.   Both b and c
9. International Agencies that have emerged over the years to finance international trade
   1.   International Finance Corporation
   2.   EXIM Bank
   3.   Asian Development Bank
   4.   All of the above
10. Which funds put a lot of burden on the business as payment of interest is to be made even when the earnings are low or when loss is incurred
    1.   Borrowed Funds
    2.   Equity Shares
    3.   Retained Earnings
    4.   Owner’s Funds
11. A business can generate funds internally by
    1.   Accelerating collection of receivables
    2.   ploughing back its profits
    3.   Disposing of surplus inventories
    4.   All of the above
12. External funds may be ___________ as compared to those raised through internal sources
    1.   Cheap
    2.   Costly
    3.   Large
    4.   Small
13. Retained Earnings is a ____________ source of funds available to an organization
    1.   Temporary
    2.   Short-term
    3.   External
    4.   Permanent
14. Excessive ploughing back may cause dissatisfaction amongst the ______________ as they would get lower dividends
    1.   Debenture holders
    2.   Shareholders
    3.   Lenders
    4.   Suppliers
15. A financial service under which the ‘factor’ renders various services is called
    1.   Trade credit
    2.   Factoring
    3.   Bills of Exchange
    4.   Public deposit
16. If the credit is extended by one trader to another for the purchase of goods and services it is called
    1.   Asset
    2.   Trade Credit
    3.   Loan
    4.   Debt
17. A fixed rate of interest is paid by the borrowers on such funds_____________.
    1.   Owner’s Funds
    2.   Borrowed Funds
    3.   Both a and b
    4.   None of These
18. ADRs are issued in
    1.   Canada
    2.   India
    3.   USA
    4.   China
19. The redeemable is used for
    1.   Preference shares
    2.   Commercial Paper
    3.   Public Deposits
    4.   Both A and C
20. Where the funds are required for a period of more than one year but less than five years, which sources are used
    1.   Long term sources
    2.   Medium term sources
    3.   Short term sources
    4.   Very short term sources