Business Finance
NCERT Solution
MCQ Answers
Question 1: Equity shareholders are called
- Owners of the company
- Partners of the company
- Executives of the company
- Guardian of the company
Answer: (a) Owners of the company
Question 2: The term ‘redeemable’ is used for
- Preference shares
- Commercial paper
- Equity shares
- Public deposits
Answer: (b) Commercial paper
Question 3: Funds required for purchasing current assets is an example of
- Fixed capital requirement
- Ploughing back of profits
- Working capital requirement
- Lease financing
Answer: (c) Working capital requirement
Question 4: ADRs are issued in
- Canada
- China
- India
- USA
Answer: (d) USA
Question 5: Public deposits are the deposits that are raised directly from
- The public
- The directors
- The auditors
- The owners
Answer: (a) The public
Question 6: Under the lease agreement, the lessee gets the right to
- Share profits earned by the lessor
- Participate in the management of the organization
- Use the asset for a specified period
- Sell the assets
Answer: (c) Use the asset for a specified period
Question 7: Debentures represent
- Fixed capital of the company
- Permanent capital of the company
- Fluctuating capital of the company
- Loan capital of the company
Answer: (d) Loan capital of the company
Question 8: Under the factoring arrangement, the factor
- Produces and distributes the goods or services
- Makes the payment on behalf of the client
- Collects the client’s debt or account receivables
- Transfer the goods from one place to another
Answer: (c) Collects the client’s debt or account receivables
Question 9: The maturity period of a commercial paper usually ranges from
- 20 to 40 days
- 60 to 90 days
- 120 to 365 days
- 90 to 364 days
Answer: (d) 90 to 364 days
Question 10: Internal sources of capital are those that are
- generated through outsiders such as suppliers
- generated through loans from commercial banks
- generated through issue of shares
- generated within the business
Answer: (d) Generated within the business