MCQs for CBSE Class 11 Business Studies Chapter 7: This article presents essential Multiple-Choice Questions for CBSE Class 11 Business Studies Chapter 7, Formation of a Company. You can also find attached a PDF download link for future reference. The class 11 Business Studies textbook has been divided into two parts. MCQs for Part 1 have been covered in the previous articles, links to which have been attached further in the article. Now, we have prepared a list of MCQs for CBSE Class 11 Business Studies Part 2 (Corporate Organization, Finance, and Trade), Chapter 1, Formation of a Company.
MCQs can be difficult to answer accurately. Good preparation is required to score well in MCQs. We have listed down a few sources of preparation that can assist you to solve MCQs correctly:
- Take Mock Tests
- Practise previous-year question papers
- Practise Sample Paper
- Practise questions from Question Banks
- Focus on important topics
- Practise multiple types of MCQs
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 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 plowing 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 7, 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)
