Class 11 Business Studies Chapter 8 Sources of Business Finance MCQ Questions with Answer

Sources of Business Finance Class 11 MCQ is one of the best strategies to prepare for the CBSE Class 11 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more Sources of Business Finance class 11 MCQ which will help them all through their board test.

Sources of Business Finance Class 11 MCQ Questions with Answer

Class 11 Business Studies MCQ with answers are given here to Chapter 8 Sources of Business Finance. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 11 Business Studies syllabus. By Solving these Class 11 MCQs, you will be able to analyze all of the concepts quickly in the Chapter and get ready for the Class 11 Annual exam.

Learn Sources of Business Finance Class 11 MCQ with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 11 Sources of Business Finance MCQ with answers given below.

Question 1 : Industrial Finance Corporation of India (IFCI) was established in ____
(a) July 1948
(b) July 2001
(c) July1956
(d) July 1991
Answer :  A

Question 2 : The term ‘redeemable’ is used for
(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits
Answer :  A

Question 3 : . ICICI was established in _________________

(a) 1985

(b) 1975

(c) 1965

(d) 1955 

Answer :  D

Question 4 : Money obtained by issue of shares is known as _____
(a) Debts
(b) Share Capital
(c) Loans
(d) Reserve Funds
Answer :  B

Question 5 : Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods . . . .
(a) Ordinary annuity
(b) Annuity due
(c) Perpetuity
(d) A and C
Answer :  A

Question 6 : Under the lease agreement, the lessee gets the right to
(a) Share profits earned by the lessor
(b) Participate in the management of the organization
(c) Use the asset for a specified period
(d) Sell the assets

Question 7 : Which of the following statement is TRUE regarding debt?
(a) Debt is an ownership interest in the firm.
(b) Unpaid debt can result in bankruptcy or financial failure.
(c) Debt provides the voting rights to the bondholders.
(d) Corporation’s payment of interest on debt is fully taxable.
Answer : B

Question 8 : Dividend is paid only on _____
(a) Loans
(b) Debentures
(c) Bonds
(d) Shares 
Answer :  D

Question 9 : Funds raised through loans or borrowings are _____
(a) Borrowed funds
(b) Owners Equity
(c) None of these
(d) Share Capital
Answer :  A

Question 10 : Internal sources of capital are those that are
(a) generated through outsiders such as suppliers
(b) generated through loans from commercial banks
(c) generated through issue of shares
(d) generated within the business
Answer :  D

Question 11 : If a firm’s debt ratio is 45%, this means _____ of the firm’s assets are financed by equity financing.
(a) 50%
(b) 55%
(c) 45%
(d) Cannot be determined without more information

Question 12 : An individual authorized by another person, called the principle to act on the latter’s on behalf is known as . . . .
(a) Agent
(b) Servant
(c) Subordinate
(d) Assistant
Answer :  A

Question 13 : Public deposits are the deposits that are raised directly from
(a) The public
(b) The directors
(c) The auditors
(d) The owners
Answer :  A

Question 14 : Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
(a) Ordinary annuity
(b) Annuity due
(c) Perpetuity
(d) None of the given options
Answer :  A

Question 15 : Funds required for purchasing current assets is an example of
(a) Fixed capital requirement
(b) Ploughing back of profits
(c) Working capital requirement
(d) Lease financing
Answer :  C

Question 16 : Which of the following factors that are considered to solve the financial problems of business organizations are- i. Cost of Capital Supply ii. Importance and Objectives of capital iii. Different types of benefits
(a) i and ii
(b) i and iii
(c) ii and iii
(d) i, ii and iii

Question 17 : The ordinary shares of a company are delivered to the depository bank; which in turn issues the depository receipts; known as ____
(a) Commercial banks
(b) ADR
(c) None of these
(d) GDR
Answer :  D

Question 18 : Debentures represent
(a) Fixed capital of the company
(b) Permanent capital of the company
(c) Fluctuating capital of the company
(d) Loan capital of the company
Answer :  D

Question 19 : Under the lease agreement, the lessee gets the right to
(a) Use the asset for a specified period
(b) Share profits earned by the lessor
(c) Sell the assets
(d) Participate in the management of the organisation
Answer :  A

Question 20 : Under the lease agreement; the lessee gets the right to
(a) Share profits earned by the lessor
(b) Participate in the management of the organization
(c) Use the asset for a specified period
(d) Sell the assets
Answer :  C

Question 21 : In which form of Business, owners have limited liability.
(a) sole proprietorship
(b) partnership
(c) joint stock company
(d) none of the above

Question 22 : Debentures represent

(a) Fixed capital of company

(b) Fluctuating capital of company

(c) Loan capital of the the company

(d) Permanent capital of the company

Answer :  C

Whoever needs to take the CBSE Class 11 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 11 Business Studies Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These Sources of Business Finance Class 11 MCQ are ready by the subject specialists themselves.

Question 23 : Internal sources of capital are those that are
(a) generated through outsiders such as suppliers
(b) generated through loans from commercial banks
(c) generated through issue of shares
(d) generated within the business

Answer :  D 

Question 24 : ADRs are issued in
(a) Canada
(b) China
(c) India
(d) USA

Answer :  D

Question 25 : Expand GDR

(a) Global Depository Receipts

(b) Gross Domestic Receipts

(c) Government Direct Receipts

(d) None of the above

Answer :  A

Question 26 : The term ‘redeemable’ is used for
(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits

Question 27 : ______ was the first company in India to issue convertible zero interest debentures in January 1990
(a) Mahindra and Mahindra
(b) Adani Enterprise
(c) Tata Motors
(d) Reliance Limited
Answer :  A

Question 28 :  Investors who want steady income may not prefer ____________

(a) Bonds

(b) Equity Shares

(c) Debentures

(d) None of the above

Answer :  B

Question 29 : Which of the following is a commercial bank?
(a) Punjab National Bank
(b) Canara bank
(c) State Bank of India
(d) All of the above
Answer :  D

Question 30 : In which form of Business owners have limited liability is . . . .
(a) Sole Proprietorship
(b) Partnership
(c) Joint Stock Company
(d) Entrepreneurs
Answer : C

Question 31 : Which of the following ratios are intended to address the firm’s financial leverage?
(a) Liquidity Ratios
(b) Long-term Solvency Ratios
(c) Asset Management Ratios
(d) Profitability Ratios

Question 32.  Money obtained by issue of shares is known as ___________
(a) Debts
(b) Loans
(c) Reserve Funds
(d) Share Capital
Answer :  D

Question 33. ICICI was established in _________________
(a) 1985
(b) 1975
(c) 1965
(d) 1955
Answer :  D

Question 34 . Which of the following is a commercial bank?
(a) Punjab National Bank
(b) Canara bank
(c) State Bank of India
(d) All of the above
Answer :  D

Question 35. Under the lease agreement, the lessee gets the right to
(a) Use the asset for a specified period
(b) Share profits earned by the lessor
(c) Sell the assets
(d) Participate in the management of the organisation
Answer :  A

Question 36. The term ‘redeemable’ is used for
(a) Public deposits
(b) Commercial paper
(c) Equity shares
(d) Preference shares
Answer :  B

Question 37 . Expand ICICI
(a) Indian Credit and Investment Corporation of India
(b) International Credit and Investment Corporation of India
(c) Industrial Credit and Investment Corporation of India
(d) None of the above
Answer :  C

Question 38. Life insurance corporation was set up in ________
(a) 1985
(b) 1975
(c) 1956
(d) 1965
Answer :  C

Question 39. Dividend is paid only on ___________
(a) Bonds
(b) Debentures
(c) Shares
(d) Loans
Answer :  C

Question 40. Investors who want steady income may not prefer ____________
(a) Bonds
(b) Equity Shares
(c) Debentures
(d) None of the above
Answer : B

Question 41 : What are internal sources of capital?
(a) Generated through issue of shares.
(b) Generated through outsiders such as suppliers.
(c) Generated within the business.
(d) Generated through loans from commercial banks. 

Answer :  C

Question 42 : Which of the following ratios are particularly interesting to shortterm creditors?
(a) Liquidity Ratios
(b) Long-term Solvency Ratios
(c) Profitability Ratios
(d) Market Value Ratios

Answer :  A

Question 43. Sources of finance can be categorised as _____________
(a) Source of Generation Basis
(b) Period Basis
(c) Ownership
(d) All of the above
Answer :  D

Question 44. Industrial Finance Corporation of India (IFCI) was established in _______
(a) July 1948
(b) July 2001
(c) July 1956
(d) July 1991
Answer :  A

Question 45. __________ was the first company in India to issue convertible zero interest debentures in January 1990
(a) Reliance Limited
(b) Adani Enterprise
(c) Tata Motors
(d) Mahindra and Mahindra

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