Class 11 Business Studies

Business Finance

NCERT Solution: MCQ

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


  • The term ‘redeemable’ is used for
    • Preference shares
    • Commercial paper
    • Equity shares
    • Public deposits

      Answer: (b) Commercial paper
  • 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
  • ADRs are issued in
    • Canada
    • China
    • India
    • USA

      Answer: (d) USA
  • Public deposits are the deposits that are raised directly from
    • The public
    • The directors
    • The auditors
    • The owners

      Answer: (a) The public
  • 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


  • 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
  • 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
  • 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
  • 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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