CBSE Questions for Class 10 Elements Of Business Sources Of Business Finance Quiz 1 - MCQExams.com

The life of a company is not affected by the ___ of a share holder.
  • Death
  • Disability
  • Insolvency
  • All of above
Expand ICD.
  • Inter-corporate Deposit
  • International Company Deposit
  • Indian corporate Deposit
  • Indore company deposit
Who, among the following, are called owners of the company?
  • Debenture holders
  • Preference shareholders
  • Directors
  • Equity shareholders
Debenture holders are also referred to as _______________.
  • Employees of the Company
  • Owner of the Company
  • Creditors of the Company
  • None of the above
The Principal sources of capital at the earliest stages of the firm ______________.
  • Equity capital
  • Short term debts
  • Long term debts
  • Both (a) and (b)
A stock dividend is paid out of ________________.
  • current earnings
  • retained earnings
  • capital surplus
  • paid-in-surplus
Funds are raised_____________.
  • From the reinvestment of retained earnings
  • By raising more machinery loans
  • By reducing the value of current assets
  • All of the above
The use of borrowings for the purpose of financial advantage for residual stockholders is also called ____________.
  • Trading on equity
  • Debt Equity Ratio
  • Both (a) or (b)
  • None of the above
Which of the following is a requirement of financing a plan?
  • Matching financial resources to physical targets
  • Realisation of Plan target through correct implementation
  • Raising financial resources to implement the Plan
  • To make the Plan smaller in size to be met by the available resource.
External sources includes :-
  • Funds from long-term loans
  • Venture capital
  • Funds from increase in share capital
  • All of the above
The increase in profit return resulting from borrowing capital at a low rate and employing it in a business yielding at a higher rate ____________.
  • Operating leverage
  • Trading on equity
  • Asset leverage
  • Return on investment leverage
Nomination facility is available to
  • Individuals / Sole Proprietorship accounts/Private Limited Companies
  • Individuals / Sole Proprietorship / Accounts/ Partnership Accounts
  • Individuals / Sole Proprietorship Accounts
  • All of the above
In business, leverage is the means of ______________.
  • Increasing profits
  • Increasing output
  • Reducing cost
  • All of the above
In each bank, within a credit-rating scale, borrowers are classified into _____________________.
  • Excellent, Good and Average
  • Below Average or Unsatisfactory
  • Excellent and Below Average
  • Both (a) and (b)
Which of the following is/are the source(s) of short term finance?
  • Trade Credit
  • Cash advance loan
  • Short term Borrowings
  • All of the above
Public deposits are the deposits that are raised directly from _______.
  • The public
  • The directors
  • The auditors
  • The owners
$$\frac{Shareholder's funds}{total assets}\100$$ is a ____________.
  • Liquidity ratio
  • Solvency ratio
  • Profitability ratio
  • Credibility ratio
Which of the following is true for 'dirty float'?
  • It is a purely fixed exchange rate system
  • It is compromise between fixed and floating exchange rate systems
  • Central banks sometimes intervene in the forex market to curb sharp changes.
  • Both (B) and (C) above
  • All of (A), (B) and (C) above
Which is of the following is / are false?
  • In the FIFO method the issue is in the order of receipt.
  • In the replacement method the current realizable value is taken for pricing the issues.
  • In the weighted average method issue price is the weighted average of quantity and price and the weight being the percentage of value of each lot in the total stock.
  • Under inflationary conditions LIFO method will show low value of inventory.
  • Both (B) and (D) above
Which of the following is true with respect to sources and uses of funds?
  • Depreciation and decrease in NWC are sources of funds
  • Depreciation and decrease in NWC are uses of funds
  • Depreciation is a source of fund but decrease in NWC is use of fund
  • Depreciation in a use of fund but decrease in NWC is source of fund.
  • Depreciation and increase in NWC are uses of funds.
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