MCQs for CBSE Class 11 Business Studies Chapter 8: This article brings to you the list of important Multiple-Choice Questions for Class 11 Business Studies Chapter 8, Sources of Business Finance are here for free download in PDF. Students appearing for CBSE Class 11 end-term annual examinations 2024 must have a look at this set of questions.
MCQs are built keeping in mind mental capabilities of students. They are tricky questions designed to check students’ observational skills, critical thinking, and problem-solving skills. They enhance students’ retaining power, high-order thinking skills, and much more. Since they test the soft skills of students they are preferred as the exam pattern for competitive exams.
Related:
CBSE Class 11 Business Studies Revised Syllabus 2023-2024 (PDF)
MCQs for CBSE Class 11 Business Studies Chapter 1
MCQs for CBSE Class 11 Business Studies Chapter 2
MCQs for CBSE Class 11 Business Studies Chapter 3
MCQs for CBSE Class 11 Business Studies Chapter 4
MCQs for CBSE Class 11 Business Studies Chapter 5
MCQs for CBSE Class 11 Business Studies Chapter 6
MCQs for CBSE Class 11 Business Studies Chapter 7
MCQs for CBSE Class 11 Business Studies Chapter 7 are:
1.ADRs are issued in
(a) Canada
(b) China
(c) India
d) USA
Answer.d) USA
2)If the credit is extended by one trader to another for the purchase of goods and services it is called
(a) Trade Credit
(b) Loan
(c) Debt
d) Asset
Answer. a) Trade Credit
3.What are the important sources from where the owner‘s funds can be obtained
(a) Preference Shares
(b) Equity Shares
(c) Retained Earnings
d) Both b and c
Answer.d) Both b and c
4.A business can generate funds internally by
(a) Accelerating collection of receivables
(b) ploughing back its profits
(c) Disposing of surplus inventories
d) All of the above
Answer. d) All of the above
5.Where the funds are required for a period of more than one year but less than five years, which sources are used
(a) Long term sources
(b) Medium term sources
(c) Short term sources
d) Very short-term sources
Answer. b) Medium-term sources
6.A fixed rate of interest is paid by the borrowers on such funds……
a) Owner‘s Funds
b) Borrowed Funds
c) Both a and b
Answer. b) Borrowed Funds
7.Short term funds are those which are required for a period not exceeding
(a) 1 year
(b) 6 months
(c) 9 months
d) 1 yr 6 months
Answer. a) 1 year
8.What is a source of internal financing or self-financing?
(a) Trade Credit
(b) Factoring
(c) Retained Earnings
(d) Lease Financing
Answer. c) Retained Earnings
9.Which one of the following is included in the category of Owner‘s Funds
(a) Debentures
(b) Loans from Banks
(c) Equity Shares
d) Public Deposits
Answer. c) Equity Shares
10.Excessive ploughing back may cause dissatisfaction amongst the ______________ as they would get lower dividends
(a) Debenture holders
(b) Shareholders
(c) Lenders
d) Suppliers
Answer. b) Shareholders
11.External funds may be ___________ as compared to those raised through internal sources
(a) Cheap
(b) Costly
c) Large
d) Small
Answer. b) Costly
12.Which of the following is/are the sources for raising borrowed funds?
(a) Retained Earnings
(b) Issue of Debentures
(c) Public Deposits
d) Both b and c
Answer. d) Both b and c
13.Long term sources fulfill the financial requirements of an enterprise for a period exceeding
(a) 5 yrs
(b) 4 yrs
(c) 3 yrs
d) 2 yrs
Answer. a) 5 years
14.Funds required to purchase fixed assets like Land and Building, Plant and Machinery and Furniture and Fixtures are called
(a) Business Finance
(b) Working Capital
(c) Fixed Capital
(d) Commercial Paper
Answer. c) Fixed Capital
15.Which one of the following is a short term source of finance?
(a) Debentures
(b) Commercial Paper
(c) Equity Shares
(d) Loans from Financial Institutions
Answer. b) Commercial Paper
To download MCQs for Class 11 Business Studies Chapter 8, click on the link below
Also Find:
CBSE Class 11 Syllabus 2023-24 (All Subjects)
CBSE Class 11 Deleted Syllabus 2023-24 (All Subjects)
NCERT Class 11 Rationalised Content 2023-2024 (All Subjects)
