Class 11 Business Studies

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


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