Unit 3 Business Finances - Types of Finances MCQ

_____ is called the lifeblood of any business entreprise.

• Profit

• Loss

• Finance

• Assets

Which of these statements best define 'business finance'?

• It is the requirement of funds by a business to carry out its various activities.

• It is the requirement of profits by business to carry out its various activities.

• It is the requirement of liabilities by a business to carry out its various activities.

• It is the requirement of customers by business to carry out its various activities.

The person holding share of a particular company is called as ____ of that company.

• shareholder

• debenture holder

• debtor

• creditor

In which type of business do all owners share in gains and losses and all have unlimited liability for all business debts?

• Sole proprietorship

• General partnership

• Limited partnership

• Corporation

• All of the above

Equity shareholders are called

• Partners of the company

• Owners of the company

• Executives of the company

• Employees of the company

In a sole proprietorship, who owns and manages the business?

• Board of directors

• Partners

• Shareholders

• Single individual

What is a distinctive feature of a corporation?

• Limited liability for shareholders

• Sole ownership

• Informal decision-making structure

• Unlimited liability for owners

One advantage of sole proprietorship over a corporation is

• Limited liability

• Easier access to capital

• Separation of ownership and management

• Lower income tax rates

At which stage does the need of finance arises in business?

• For carrying out day to day operations.

• During the purchase of assets.

• As soon as an entrepreneur decides to start a business.

• All of these

Funds raised through loans or borrowing are .......

• Borrowed funds

• Owners funds

• Share capital

• None of these