Business Finance

NCERT Solution

MCQ Answers

Question 1: Equity shareholders are called

  1. Owners of the company
  2. Partners of the company
  3. Executives of the company
  4. Guardian of the company

    Answer: (a) Owners of the company

Question 2: The term ‘redeemable’ is used for

  1. Preference shares
  2. Commercial paper
  3. Equity shares
  4. Public deposits

    Answer: (b) Commercial paper

Question 3: Funds required for purchasing current assets is an example of

  1. Fixed capital requirement
  2. Ploughing back of profits
  3. Working capital requirement
  4. Lease financing

    Answer: (c) Working capital requirement

Question 4: ADRs are issued in

  1. Canada
  2. China
  3. India
  4. USA

    Answer: (d) USA

Question 5: Public deposits are the deposits that are raised directly from

  1. The public
  2. The directors
  3. The auditors
  4. The owners

    Answer: (a) The public

Question 6: Under the lease agreement, the lessee gets the right to

  1. Share profits earned by the lessor
  2. Participate in the management of the organization
  3. Use the asset for a specified period
  4. Sell the assets

    Answer: (c) Use the asset for a specified period

Question 7: Debentures represent

  1. Fixed capital of the company
  2. Permanent capital of the company
  3. Fluctuating capital of the company
  4. Loan capital of the company

    Answer: (d) Loan capital of the company

Question 8: Under the factoring arrangement, the factor

  1. Produces and distributes the goods or services
  2. Makes the payment on behalf of the client
  3. Collects the client’s debt or account receivables
  4. 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

  1. 20 to 40 days
  2. 60 to 90 days
  3. 120 to 365 days
  4. 90 to 364 days

    Answer: (d) 90 to 364 days

Question 10: Internal sources of capital are those that are

  1. generated through outsiders such as suppliers
  2. generated through loans from commercial banks
  3. generated through issue of shares
  4. generated within the business

    Answer: (d) Generated within the business


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