Tag: business studies

Quizzes (322) Questions (660)

Questions Related to business studies

Multiple choice long-term and short-term finance sources of business finance business studies

There are _______ types of cost that should be taken into account while deciding about the source of funds to be used for an organisation.

  1. two

  2. three

  3. four

  4. six
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

There are two types of cost that should be taken into account while deciding about the source of funds to be used for an organization. The two types of cost include explicit and implicit cost of the organization.

Multiple choice long-term and short-term finance sources of business finance business studies

The ______________ of a business is a key determinant.

  1. cost

  2. financial strength

  3. legal status

  4. control
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The financial strength of a business is a key determinant as finance is the life blood of any business. Finances are required by a company to carry out various activities. They can be classified into long-term capital needs and working capital needs.

Multiple choice long-term and short-term finance sources of business finance business studies

___________ borrowings offer the benefit of reduced cost due to reduction of idle capital.

  1. Short-term

  2. Long-term

  3. Medium-term

  4. Both a and b
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Short term borrowings offer the benefit of reduced cost due to reduction of idle capital. Short term borrowings refers to the debt which is obtained for an year or less than a year.

Multiple choice long-term and short-term finance sources of business finance business studies

____________ borrowings are considered a necessity on many grounds.

  1. Short-term

  2. Long-term

  3. Medium-term

  4. Both a and b
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Long-term borrowings are generally used for fixed capital needs like plant & machinery, buildings and projects. They are borrowings which exceed 5 years or more. Hence, long-term borrowings are considered a necessity on many grounds.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders
The stakeholders of the company include  ___________.

  1. shareholders

  2. government authorities

  3. employees

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
A stakeholder is a person which has an interest in a company that he/she deals with and can either affect or be affected by the business. Thus shareholders, government authorities, employees etc are stakeholders of the company.
Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Communities and governments are closely tied external stakeholders.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Communities and governments are closely tied external stakeholders- this is a true statement.External stakeholders belong to the entities outside the business organization. Officials and suppliers are also external stakeholders.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

________ contributes asset in a form of capital or equity.

  1. An investor

  2. A Creditor

  3. Employees

  4. Managers
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 An investor contributes asset in a form of capital or equity. Investors invests capital or wealth in any company or financial market to receive some financial gain in return.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Maximizing shareholder value is a very limited concept and distracts everyone from what the purpose of a company is or should be.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Maximizing shareholder value is a very limited concept and distracts everyone from what the purpose of a company is or should be- this is a true statement. Maximizing the number of shareholders should be the purpose of a company.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Creditors are the external stakeholders of a company.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Creditors are the external stakeholders of a company- this is a true statement since creditors belong to the entities outside the business organization. Like creditors, officials and suppliers are also external stakeholders.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

An investor earns investment income or dividend. A creditor earns interest income and other credit charges.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
An investor contributes asset in a form of capital or equity.
A creditor contributes asset in a form of debt or liability. Thus, an investor earns investment income or dividend. A creditor earns interest income and other credit charges.