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Worksheets

Sources of Finance

Total questions: 15

Worksheet time: 5mins

Name
Class
Date
1.

which of the following is a feature of Indian depository receipt?

a)

it is issued to American citizens only

b)

it is purchased and sold by NRIs

c)

it is traded in the American stock exchange

d)

it is issued to Indian citizens only

2.

who are residual owners of a company?

a)

preference shareholders

b)

equity shareholders

c)

debentures holder

d)

none of the above

3.

GDR holders ____

a)

do not have voting rights

b)

can collect dividend

c)

have voting rights

d)

both and b

4.

Debentures represent____

a)

Fixed capital of the company

b)

Loan capital of the company

c)

Fluctuating capital of the company

d)

Permanent capital of

the company

5.

Funds required for purchasing current assets is an example of

a)

Fixed capital requirement

b)

Ploughing back of profits

c)

Working capital requirement

d)

NONE OF THE ABOVE

6.

Investors who want steady income may not prefer ____________

a)

Equity Shares

b)

Debentures

c)

Bonds

7.

foreign currency convertible bonds are similar to

a)

preference share

b)

. equity share

c)

convertible debentures

d)

secured debentures

8.

retained earnings is an example of

a)

long term funds

b)

owners funds

c)

internal source

d)

all of the above

9.

financial institutions are also called

a)

regional banks  

b)

development banks

c)

market banks

d)

none of the above

10.

which type of preference share can accumulate unpaid dividends in future years

a)

participating

b)

cumulative

c)

convertible

d)

non-participating

11.

cost of public deposits is less than the cost of borrowing from banks

a)

TRUE

b)

FALSE

12.

EXIM Bank was the first company to issue IDR

a)

TRUE

b)

FALSE

13.

trade credit is a medium-term source of funds

a)

TRUE

b)

FALSE

14.

convertible preference shares can be converted into equity shares within a specific time period

a)

TRUE

b)

FALSE

15.

true or false interest payment on debentures is not tax-deductible

a)

TRUE

b)

FALSE