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Sources of Business Finance - Class XI Quiz

Class XI
Business Studies
Sources of Business Finance
12 questions
HARD

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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