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Sources of Business Finance - Class XI Quiz

Class XI
Business Studies
Sources of Business Finance
15 questions
HARD

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1. Which of the following is a long-term source of business finance?

Trade Credit · Debentures · Bank Overdraft · Public Deposits

2. What is the primary characteristic of equity shares?

Fixed rate of return · Ownership in the company · Repayable after a fixed term · Secured against assets

3. Which source of finance is considered the cheapest for a business?

Equity Shares · Retained Earnings · Debentures · Loans from Financial Institutions

4. Which of the following is NOT a feature of debentures?

Fixed interest payment · Ownership in the company · Redeemable after a certain period · Secured or unsecured

5. What type of financing involves borrowing from the public?

Public Deposits · Equity Financing · Venture Capital · Trade Credit