Grade: XII
Subject: COMMERCE
Unit Number: 2 Unit Name: Financing
Topic Name: Sources of Finance
Question 1.
Funds required for purchasing current assets is an example of
(a) Fixed capital requirement
(b) Ploughing back of profits
(c) Working capital requirement
(d) Lease financing
Answer: (c) Working capital requirement
Question 2.
Public deposits are the deposits that are raised directly from
(a) The public
(b) The directors
(c) The auditors
(d) The owners
Answer: (a) The public
Question 3.
Equity shareholders are called
(a) Owners of the company
(b) Partners of the company
(c) Executives of the company
(d) Guardian of the company
Answer: (a) Owners of the company
Question 4.
Under the factoring arrangement, the factor
(a) Produces and distributes the goods or services
(b) Makes the payment on behalf of the client
(c) Collects the client's debt or account receivables
, (d) Transfer the goods from one place to another
Answer: (c) Collects the client’s debt or account receivables
Question 5.
The term 'redeemable' is used for
(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits
Answer: (a) Preference shares
Question 6.
Debentures represent
(a) Fixed capital of the company
(b) Permanent capital of the company
(c) Fluctuating capital of the company
(d) Loan capital of the company
Answer: (d) Loan capital of the company
Question 7.
Which of the following is not the benefit of issuing equity shares?
(a) No charge on assets
(b) Dilution of control
(c) No burden on profits
(d) Source of permanent capital
Answer: (b) Dilution of control
Question 8.
Under ESOP shares are issued to employees at
(a) Market price
(b) Below market price
(c) Free of cost
(d) None of the above
Answer: (b) Below market price
Subject: COMMERCE
Unit Number: 2 Unit Name: Financing
Topic Name: Sources of Finance
Question 1.
Funds required for purchasing current assets is an example of
(a) Fixed capital requirement
(b) Ploughing back of profits
(c) Working capital requirement
(d) Lease financing
Answer: (c) Working capital requirement
Question 2.
Public deposits are the deposits that are raised directly from
(a) The public
(b) The directors
(c) The auditors
(d) The owners
Answer: (a) The public
Question 3.
Equity shareholders are called
(a) Owners of the company
(b) Partners of the company
(c) Executives of the company
(d) Guardian of the company
Answer: (a) Owners of the company
Question 4.
Under the factoring arrangement, the factor
(a) Produces and distributes the goods or services
(b) Makes the payment on behalf of the client
(c) Collects the client's debt or account receivables
, (d) Transfer the goods from one place to another
Answer: (c) Collects the client’s debt or account receivables
Question 5.
The term 'redeemable' is used for
(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits
Answer: (a) Preference shares
Question 6.
Debentures represent
(a) Fixed capital of the company
(b) Permanent capital of the company
(c) Fluctuating capital of the company
(d) Loan capital of the company
Answer: (d) Loan capital of the company
Question 7.
Which of the following is not the benefit of issuing equity shares?
(a) No charge on assets
(b) Dilution of control
(c) No burden on profits
(d) Source of permanent capital
Answer: (b) Dilution of control
Question 8.
Under ESOP shares are issued to employees at
(a) Market price
(b) Below market price
(c) Free of cost
(d) None of the above
Answer: (b) Below market price
