Tag: sources of business finance - 1

Quizzes (4) Questions (55)

Questions Related to sources of business finance - 1

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

On basis of time period, the different sources of funds can be categorized into _____ categories.

  1. Two

  2. Three

  3. Four

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

Sources of funds can be classified into three categories on the basis of the duration of the financing available. They are : 

Long-term sources: These are for a long period of time, exceeding 5 years.
Medium- term sources : These are for a medium period of time, i.e more than a year and less than 5 years.
Short- term sources: These are for a short period of time, i.e not exceeding one year.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

On the basis of period, the different sources of funds are ______.

  1. Medium-term sources

  2. Long-term source

  3. Short-term sources.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Sources of funds can be classified into three categories on the basis of the duration of the financing available. They are : 

Long-term sources: These are for a long period of time, exceeding 5 years.
Medium- term sources : These are for a medium period of time, i.e more than a year and less than 5 years.
Short- term sources: These are for a short period of time, i.e not exceeding one year.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

Long-term sources of finance includes ____________.

  1. Debentures

  2. Long-term borrowings

  3. Loans from financial institutions

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The long-term sources fulfil the financial requirements of an enterprise for a period exceeding 5 years and include sources such as shares and debentures, long-term borrowings and loans from financial institutions.

Such financing is generally required for the acquisition of fixed assets such as equipment, plant, etc.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

The funds required for a period of more than one year but less than five years is called ____________.

  1. long-term finance

  2. medium-term finance

  3. short-term finance

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The classification of sources of funds on the basis of period are related to the duration of time. The medium-term sources of funds are the ones that provide financing for a time period of more than a year and not exceeding five years of time.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

Long-term financing is generally required for the acquisition of _________.

  1. Current assets

  2. Fixed assets

  3. Fictitious asset

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Long-term finance is that which is required for a long period of time, i.e. no less than 5 years . These long-term sources are generally required for the acquisition of fixed assets as these fixed assets are purchased for a long period and are also very expensive than current assets. 

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

Funds required for period exceeding 5 years is _______.

  1. Long-term financing

  2. Short-term financing

  3. Medium-term financing

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The funds that are required for a long period of time are known as long-term financing. These types of financing is required for a period exceeding 5 years.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

Wipro was founded in _______.

  1. 1948

  2. 1958

  3. 1945

  4. 1968
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Wipro is a multinational corporation of India. It is mainly a company based on information technology and business process services. Wipro was founded in 1945. Headquater of Wipro is in Bangalore.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

SSI Sector contributes __________ of the Indian Exports.

  1. $25\% - 30\%$

  2. $15\% - 20\%$

  3. $45\% - 50\%$

  4. $95\% - 100\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SSI Sector contributes 45-50% of the Indian Exports. SSI stands for Small Scale Industry. Small scale industries refer to those industries where production process is carried on a small scale or micro scale.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

The abbreviation of 'AGM' stands for_________.

  1. Arranged General Meeting

  2. Annual General Meet

  3. Annual General Meeting

  4. Arranged General Meet
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The abbreviation of 'AGM' stands for Annual General Meeting. It refers to the meeting of shareholders and other members who are associated with the company.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

Ethics has become the buzzword in the corporate world because of_________.

  1. Globalization

  2. Communications explosion

  3. Explosion

  4. Both (a) & (b)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Ethics has become the buzzword in the corporate world because of both globalization and communications explosion. Globalization refers to the process of integration of world economies into a village economy.