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Sources of Business Finance - Class XI Quiz

Class XI
Business Studies
Sources of Business Finance
10 questions
MEDIUM

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1. What is the primary purpose of business finance?

To increase employee salaries · To acquire assets and meet operational expenses · To reduce competition · To enhance customer satisfaction

2. Which of the following is a source of short-term finance?

Debentures · Public deposits · Trade credit · Equity shares

3. What is the main characteristic of equity shares?

Fixed rate of return · Ownership in the company · Repayment obligation · Short-term financing

4. Which source of finance involves borrowing funds for a fixed period?

Retained earnings · Loans from financial institutions · Public deposits · Venture capital

5. What type of finance is generated through the sale of goods and services?

Internal finance · External finance · Long-term finance · Short-term finance