Sources of finance - Grade 11

The funds needed for buying current assets are 

• Lease financing. 

• Working capital requirement. 

• Fixed capital requirement. 

• Ploughing back of profits. 

Banks require collateral as security for their loans.

• True

• False

A 'Debenture' is?

• A long term loan

• A short term loan

• an internal source of finance

Which of the following options is a source of internal finance?

• Selling assets

• Trade credit

• A bank loan

What is the reward for debenture holders?

• interest

• dividend

• profit

What is the reward for equity share holders

• profit

• interest

• dividend

A fund which create flexibility and provide tax advantage is?

• equity shares

• Preference shares

• Debentures

ownership in the business means

• Voting right

• Right to take part in management

• Right to get share of profit

• All of the above

Aforeign company want raise capital from indian market should opt for?

• ADR

• GDR

• IDR

• ICD

What are internal sources of capital?

• Generated through issue of shares. se financing. 

• Generated through outsiders such as suppliers. u

• Generated within the business.  

• Generated through loans from commercial banks.