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1. Sources of Finance for a Sole Proprietors Business includes…
(a) Capital provided by sole trader(owner)
(b) Trade credit from creditors
(c) Borrow funds from relatives and Family members
(d) Loan from commercial Banks and financial Institutions
2. Sources of Finance for a Partnership Business includes…
(a) Capital provided by Partners
(b) Investment of part of profit earned
(c) Borrow funds from partners
(d) Loan from commercial Banks and financial Institutions
(e) All of these
(e) All of these
3. Which of the following is not Sources of Finance for a Joint Stock Company ?
(a) Share capital
(b) Retained Earnings
(c) Debentures
(d) Public Deposits
(e) Borrow funds from relatives
(f) Inter corporate deposit
4. Which of the following is not include Borrowed Funds (Sources of Finance for a Joint Stock Company) ?
(a) Loan from commercial Banks and Financial Institutions
(b) Instalment credit
(c) Preference Share Capital
(d) Public Deposits
(e) Customer Advances
(f) Debentures
5. Which of the following is include Owned Funds (Sources of Finance for a Joint Stock Company) ?
(a) Equity Share Capital
(b) Retained Earnings
(c) Preference Share Capital
(d) All of these
6. Higher debt equity ratio (Debt/Equity) results in:
(a) Lower financial risk
(b) Higher Earning Per Share
(c) Higher degree of operating risk
(d) Higher degree of financial risk
7. 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 issue of shares
(d) generated within the business
8. 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
9. Under the lease agreement, the lessee gets the right to
(a) Share profits earned by the lessor
(b) Participate in the management of the organization
(c) Use the asset for a specified period
(d) Sell the assets
10. ADRs are issued in
(a) Canada
(b) China
(c) India
(d) USA
11. The term ‘redeemable’ is used for
(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits
12. When one party grants the other party the right to use the asset in return for a periodic payment, it is known as __________
(a) Lease Financing
(b) Factoring
(c) Public Deposits
(d) Debts
13. Which source of finance is preferred by investors who want fixed income at lesser risk
(a) Debentures
(c) Preference shares
(b) Equity shares
(d) Bank loan
14. Which of the following denotes the feature of Indian Depository Receipt :
(a) It is issued only to American citizens
(b) It is purchased and sold only by NRI‟s
(c) It is traded in American Stock Exchange
(d) It is issued to Indian citizens only
15. Which of the following is an external source of finance?
(a) Retained earnings
(b) Equity shares
(c)Preference shares
(d) Debentures
16. Retained earnings is a :
(a) Permanent source of funds
(b) Temporary source of funds
(c) Fixed source of funds
(d) Expensive source source of funds
17. What does Debenture holders get in return of their debt in company
(a) Dividend
(b) Interest
(c) Profit
(d) Loss
18. Companies generally invite public deposits for a period upto:
(a) 5years
(b) 4years
(c) 3years
(d) 10 years
19. Which type of funds are equity linked debt securities that are to be converted into equity or depository receipts after a specific period
(a) Foreign currency convertible bonds
(b) ADR
(c) Equity shares
(d) GDR
20. Financial institutions aim at promoting the industrial development of a country, these are also called ?
(a) Children banks
(b) Development banks
(c) Rural banks
(d) urban banks
21. Industrial Finance Corporation of India (IFCI) was established in _______.
(a) July 1948
(b) July 2001
(c) July 1956
(d) July 1991
22. State Industrial Development Corporations were established by _______.
(a) Ministry of Finance
(b) The different states
(c) Central Government
(d) None of these
23. Funds raised through loans or borrowings are ________.
(a) Borrowed funds
(b) Owners equity
(c) Share capital
(d) None of these
24. Equity shareholders are called _____.
(a) Owners of the company
(b) Partners of the company
(c) Executives of the company
(d) Guardian of the company
25. 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
