Sources of Business Finance - Class XI Quiz
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1. Which of the following is a long-term source of finance?
Trade Credit · Debentures · Bank Overdraft · Accounts Payable
2. What is the primary characteristic of equity shares?
Fixed Dividend · Ownership Stake · Repayment Obligation · Short-term Investment
3. Which source of finance is considered the most flexible?
Loans from Financial Institutions · Public Deposits · Retained Earnings · Venture Capital
4. Which of the following is NOT a source of internal finance?
Retained Earnings · Depreciation Fund · Public Deposits · Working Capital
5. What is the main advantage of using retained earnings as a source of finance?
No repayment required · High cost of capital · Dilution of ownership · Short-term liquidity
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