WorksheetsBST- SOURCES OF BUSINESS FINANCE
Total questions: 18
Worksheet time: 10mins
Which of the statements about retained profits is false?
You have unlimited amounts of money available
Shareholders and employees could be frustrated because there is less profit to be 'shared out'
You do not have to pay interest
You are free to use it for any purpose
Which is an example of an internal source of finance?
Owners' Funds
Trade credit
Leasing
Who are known as residual owners?
preference shareholders
equity shareholders
Which capital is known as risk capital?
Preference share capital
equity share capital
Out of the following which one is a type of intercorporate deposit.
Three month deposit
Call deposit
Six month deposit
All of these
Which of which of the following is source of borrowed fund.
Equity shares
Global depository receipt
Inter corporate deposits
Indian depository receipt
retained earnings does not involve any cost in the form of
Dividend
Interest
Floatation cost
All of these
Assertion: the importance of business finances increased tremendously these days.
Reason: goods are produced on large scale and capital intensive techniques are used.
Both assertion (A)and reason(R) are true and reason(R) is the correct explanation of assertion.
Both Assertion (A) and Reason (R) is not the correct explanation of assertion (A)
Assertion (A) is true but reason (R) is false
Assertion (A) is false but reason (R) is true
Assertion: Equity share capital act as a permanent source of capital for the business
Reason: equity capital is to be repaid at the time of liquidation of a company
Both assertion (A) and reason(R) are true and reason(R) is the correct explanation of assertion.
Both Assertion (A) and Reason (R) is not the correct explanation of assertion (A)
Assertion (A) is true but reason (R) is false
Assertion (A) is false but reason (R) is true
Assertion: Borrowed fund holders have a legal right to get fixed return on their investment.
Reason: They have the complete control over companies affairs.
Both assertion (A) and reason(R) are true and reason(R) is the correct explanation of assertion.
Both Assertion (A) and Reason (R) is not the correct explanation of assertion (A)
Assertion (A) is true but reason (R) is false
Assertion (A) is false but reason (R) is true
Assertion: preference shares carry preferential rights over the equity shares as regards payment of dividend and repayment of capital.
Reason: they get dividend before equity dividend is paid. On the winding up of the company, their capital is refunded first.
Both assertion(A) and reason(R) are true and reason(R) is the correct explanation of assertion.
Both Assertion (A) and Reason (R) is not the correct explanation of assertion (A)
Assertion (A) is true but reason (R) is false
Assertion (A) is false but reason (R) is true
IDRs full form
(a)
ADRs full form
(a)
GDRs full form
(a)
what do the debenture holders get by investing in a company
(a)
(a) is a credit extended by one trader to another for the purchase of goods and services
Money obtained by issue of shares is known as ___________
Debts
Share Capital
Loans
Reserve Funds
