MCQs on Business Studies Class 11 Chapter 7 - Sources of Business Finance

By Mohit Yadav Last updated : April 29, 2023

MCQs on Business Studies (CBSE) Class 11 (Chapter 7) Sources of Business Finance. Practice these multiple-choice questions and answers with explanations to learn, revise, and enhance your skills in Class 11 (Chapter 7) Sources of Business Finance. All these questions are prepared by experts based on the current NEP exam pattern.

List of Business Studies Class 11 Chapter 7 (Sources of Business Finance) MCQs

1. In which year Industrial Finance Corporation of India (IFCI) was established?

  1. July 1948
  2. July 1947
  3. July 1847
  4. July 1999

Answer: A) July 1948

Explanation:

In the year July, 1948 Industrial Finance Corporation of India (IFCI) was established.


2. Who established State Industrial Development Corporations?

  1. The different states
  2. Finance minister
  3. Central govt
  4. None of these

Answer: A) The different states

Explanation:

The different states established State Industrial Development Corporations.


3. Which funds are raised by loans or borrowing?

  1. Shares Capital
  2. Borrowed funds
  3. Govt subsidy
  4. None of these

Answer: B) Borrowed funds

Explanation:

Borrowed funds are raised by loans or borrowing.


4. Equity shareholders are known as?

  1. Owner of the company
  2. Partner of the company
  3. Caretaker of the company
  4. None of these

Answer: A) Owner of the company

Explanation:

Equity shareholders are known as the Owner of the company.


5. What do Debentures represent?

  1. Fixed capital of the company
  2. Loan capital of the company
  3. Permanent capital of the company
  4. None of them

Answer: B) Loan capital of the company

Explanation:

Debentures represent the Loan capital of the company.


6. Full form of ICICI?

  1. Indian capital investment credit investment
  2. Industrial Credit and Investment Corporation of India
  3. Don't have any full form
  4. None of these

Answer: B) Industrial Credit and Investment Corporation of India

Explanation:

The full form of ICICI is the Industrial Credit and Investment Corporation of India.


7. Which was the first company in India who issue convertible zero-interest debentures in January 1990?

  1. Mahindra & Mahindra
  2. Adani Enterprises
  3. Tata Motors
  4. Reliance Enterprises

Answer: A) Mahindra & Mahindra

Explanation:

Mahindra & Mahindra was the first company in India who issue convertible zero-interest debentures in January 1990.


8. Which are Internal sources of capital?

  1. Generated through the business
  2. Generated within the business
  3. Generated through the shares
  4. None of them

Answer: B) Generated within the business

Explanation:

Generated within the business are Internal sources of capital.


9. Under the lease agreement, what right does the lessee have?

  1. Use the asset of the specified period
  2. Can sell the asset
  3. Can rent the asset
  4. None of these

Answer: A) Use the asset of the specified period

Explanation:

Someone who has lease can Use the asset of the specified period


10. Which one is the commercial bank?

  1. Punjab national bank
  2. Canara Bank
  3. State Bank of India
  4. All of these

Answer: B) All of these

Explanation:

Punjab national bank, Canara Bank & State Bank of India.


11. Who issues ADRs?

  1. USA
  2. Canada
  3. India
  4. Russia

Answer: A)USA

Explanation:

USA issues ADRs.


12. What is the use of the term ‘Redeemable’?

  1. Commercial paper
  2. Public Company
  3. Options A & B
  4. None of these

Answer: A) Commercial paper

Explanation:

Commercial paper is the use of the term ‘Redeemable’ .


13. Who established the unit trust of India?

  1. Indian govt
  2. USA govt
  3. RBi bank
  4. HDFC bank

Answer: A) Indian govt

Explanation:

Indian govt established the unit trust of India.


14. In which year ICICI was established?

  1. 1955
  2. 1999
  3. 1998
  4. 1997

Answer: A) 1955

Explanation:

In the year 1955 ICICI was established.


15. What is the maturity period of commercial papers?

  1. 90 to 364 days
  2. 30 to 90 days
  3. 90 to 180 days
  4. 7 to 15 days

Answer: A) 90 to 364 days

Explanation:

90 to 364 days are the maturity period of commercial papers.


16. Who raised the public deposit?

  1. The public
  2. The director
  3. The owner
  4. All of these

Answer: A) The public

Explanation:

The public raised the public deposit.


17. GDRs converted into shares after ____ times?

  1. At any time
  2. After 5 years
  3. After 10 years
  4. After 11 months

Answer: A) At any time

Explanation:

GDRs converted into shares after At any time.


18. When the life insurance corporation was established?

  1. July1948
  2. July 1990
  3. July 1919
  4. None of these

Answer: A) July1948

Explanation:

In July 1948 life insurance corporation was established.






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