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Worksheets

Sources of Finance

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

what do the debenture holders get by investing in a company

a)

interest

b)

dividend

c)

profits

d)

share losses

2.

in which type of business finance are debentures included?

a)

long term source

b)

short term source

c)

medium term source

d)

no term period

3.

which are the two limitations for equity shares

a)

issue of additional equity shares is generally more as compared to the cost of raising funds through other sources

b)

does not affect the control of equity shareholders

c)

investors who want steady income may not prefer equity shares equity shares get fluctuating returns

d)

they have charge on the assets

4.

equity shareholders are called

a)

owner of the company

b)

partner of the company

c)

executives of the company

d)

guardian of the company

5.

Preference shares are shares certain _____ rights.

a)

Privilege

b)

Ordinary

6.

Dividend is paid to the preference shareholders depending on the profit percentage.

a)

True

b)

False

7.

In the event of winding up, preference shareholders are paid back on priority basis.

a)

True

b)

False

8.

capital obtained by issue of equity shares is known as - ?

a)

loans

b)

share capital

c)

debts

d)

reserve funds

9.

Investor who want steady income may not prefer - ?

a)

debentures

b)

preference shares

c)

bonds

d)

equity shares

10.

funds raised through loans or borrowings are - ?

a)

share capital

b)

owners equity

c)

borrowed funds

d)

none of these

11.

Debentures represent:

a)

fixed capital of the company

b)

borrowed capital of the company

c)

permanent capital of the company

d)

fluctuating capital of the company