We have compiled NCERT MCQ Questions for Class 11 Business Studies Chapter 8 Sources of Business Finance with Answers Pdf free download. MCQ Questions for Class 11 Business Studies with Answers were prepared according to the latest question paper pattern. Practicing these Sources of Business Finance Class 11 Business Studies MCQs Questions with Answers really effective to improve your basics and learn all the key concepts.
Sources of Business Finance Class 11 MCQs Questions with Answers
Objective Type Questions
Question 1.
Minimum number of members required for making private company :
(a) 2
(b) 3
(c) 5
(d) 7
Answer
Answer: (a) 2
Question 2.
For the approval of name of the company is applied to :
(a) SEBI
(b) Registrar of company
(c) Indian Government
(d) Concerning state government where company is to be registered.
Answer
Answer: (b) Registrar of company
Question 3.
Prospectus is issued by:
(a) Private company
(b) Public company seeking investment from public
(c) Public corporations
(d) All public companies.
Answer
Answer: (d) All public companies.
Question 4.
Signatures are done on primary documents before incorporation:
(a) Before incorporation
(b) After incorporation but before capital subscription
(c) After incorporation but before commencement of the business
(d) After commencement of the business.
Answer
Answer: (c) After incorporation but before commencement of the business
Question 5.
Minimum number of members required for making public company:
(a) 5
(b) 7
(c) 12
(d) 21
Answer
Answer: (b) 7
Question 6.
Proposed name of the company is declared void if:
(a) Is resembling to any existing company name
(b) Is resembling to any existing company logo
(c) Is resembling to any symbol of Indian Government or UNO
(d) None of these.
Answer
Answer: (d) None of these.
Question 7.
Chronological order of formation of a public company :
(a) Promotion, commencement of business, incorporation capital subscription
(b) Incorporation, capital subscription, commencement of business, promotion
(c) Promotion, incorporation, capital subscription, commencement of business
(d) Capital subscription, promotion, incorporation, commencement of business.
Answer
Answer: (b) Incorporation, capital subscription, commencement of business, promotion
Fill in the blanks
1. …… shareholder have the voting right for every proposal of company.
Answer
Answer: Equity
2. The capital of every company is divided in equal small parts is called ……..
Answer
Answer: Shares
3. Indian Industrial finance corporation is established on ……..
Answer
Answer: 1948
4. Commercial Bank provide loan to business firm for ……..
Answer
Answer: Short-term
5. Long term finance is called …….. capital.
Answer
Answer: Fixed
6. ………. have fixed rate of dividend.
Answer
Answer: Preference
7. The period of long term finance is more than ……..
Answer
Answer: 10
8. On debentures the rate of dividend is ……
Answer
Answer: Predecided.
9. ….. holder does have pre right for the capital at wind up of company.
Answer
Answer: Preference
10. The debenture gets mortgage of asset is called ……….
Answer
Answer: Mortgage debenture
10. The main office of Indian Industrial finance corporation is in ………
Answer
Answer: Mumbai
11. The President of unit trust of India is selected by …….
Answer
Answer: Reserve Bank of India
12. Short term finance is called ……. capital.
Answer
Answer: Working
13. Fully paid up share capital can change in ………
Answer
Answer: Stock
14. On the winding up of company preference is given to …….
Answer
Answer: Preference
True or False
1. Equity shares are long term sources of Business Finance.
Answer
Answer: True
2. Debenture holders possess right to vote.
Answer
Answer: True
3. Preference share carry preferential right are distribution of Dividends.
Answer
Answer: True
4. Equity share included in ownership capital.
Answer
Answer: True
5. Debenture included in ownership capital.
Answer
Answer: False
6. Small scale Industries need small amount of capital.
Answer
Answer: False
7. In private sector emphasis is given of efficiency.
Answer
Answer: False
8. The managemet of mutual fund is in the hands of professional management.
Answer
Answer: False
9. Public deposit is in the form of lent capital.
Answer
Answer: True
10. Working capital is a short term capital.
Answer
Answer: False
11. Equity share represents owners equity.
Answer
Answer: True
12. Public deposit is a source of medium term finance.
Answer
Answer: True
13. Equity share capital is long term source of business finance.
Answer
Answer: True
14. Public deposit is source of middle term finance.
Answer
Answer: False
15. In preference share there is no priority of dividend.
Answer
Answer: True
16. Public sector’s main aim to earn maximum profit.
Answer
Answer: True
17. Commercial bank provide long-term finance.
Answer
Answer: True
18. First state finance corporation is established in U.P.
Answer
Answer: True
19. Preference share are of several types.
Answer
Answer: True
20. American deposit receipt can be converted in any money.
Answer
Answer: False
Match the Columns
| (A) | (B) |
| 1. Interfere in management | (a) F.D.I. |
| 2. Short term finance | (b) Debenture |
| 3. Lent fund | (c) Commercial Bank |
| 4. International source of finance | (d) Shareholder |
| 5. Industrial development Bank | (e) 1951 |
| 6. Industrial development corporation | (f) 1948 |
| 7. Indian Industrial finance corporation | (g) 1954 |
| 8. First state of state finance corporation | (h) 1964 |
| 9. Public deposit | (i) Emphasis on Assets |
| 10. Debentures | (j) Public |
Answer
Answer:
| (A) | (B) |
| 1. Interfere in management | (d) Shareholder |
| 2. Short term finance | (c) Commercial Bank |
| 3. Lent fund | (b) Debenture |
| 4. International source of finance | (a) F.D.I. |
| 5. Industrial development Bank | (h) 1964 |
| 6. Industrial development corporation | (g) 1954 |
| 7. Indian Industrial finance corporation | (f) 1948 |
| 8. First state of state finance corporation | (e) 1951 |
| 9. Public deposit | (j) Public |
| 10. Debentures | (i) Emphasis on Assets |
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