Tag: introduction to business capital/finance

Questions Related to introduction to business capital/finance

As per section 2(51) of the Companies Act, 2013, "Key Managerial Personnel", in relation to a company, means _______.
(i) Chief Executive officer or managing director or manager
(ii) Company Secretary
(iii) General Manager
(iv) Whole Time Director
(v) Chief Legal Officer 
(vi) Chief Financial Officer
The correct answer is -

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. (i), (ii), (iv) & (vi)

  2. (i), (iii), (iv), (v) & (vi)

  3. (i), (ii), (v) & (vi)

  4. (i), (iv), (v) & (vi)

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Correct Option: A

Which of the following is the external user of financial statements?

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Manager of the business

  2. CEO of the business

  3. Creditor of the business

  4. Controller of the business

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Correct Option: C

Operating and financial leverage are _____________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Independent

  2. Dependent

  3. Interdependent

  4. None of these

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Correct Option: C

Which of the following is said to be the lifeblood of an organization?

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Debentures

  2. Finance

  3. Material

  4. Goodwill

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Correct Option: B
Explanation:

Finance is regarded as the lifeblood of a business enterprise. It is the basic foundation of all kinds of economic activities. Finance is the master key that provides access to all the sources for being employed in manufacturing and merchandising activities. The success of an organization largely depends on efficient management of its finances.

Money required for carrying out business activties is called ___________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. financial management

  2. business finance

  3. finance

  4. cost management

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Correct Option: B
Explanation:

Business finance refers to money and credit employed in business. It involves procurement and utilization of funds so that business firms may be able to carry out their operations effectively and efficiently.

Every business enterprise must undertake such business which is_________________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Unlawful

  2. Lawful

  3. Illegal

  4. All of above

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Correct Option: B
Explanation:

Every business enterprise must undertake such business which is lawful. All business organization should adhere to the law of the country to ensure peace and order. Illegal and unlawful business organizations should not be undertaken.

BIFR means.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Board for Industrial and Financial Reconstruction

  2. Board for International and Financial Reconstruction

  3. Board for Industrial and Forex Reconstruction

  4. Board for International and Forex Revival

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Correct Option: A
Explanation:

Board for Industrial and Financial Reconstruction $(BIFR)$ is a board setup by the Government of India, in order to tackle the problem of industrial sickness, under the purview of Sick Industrial Companies (Special Provisions) Act,$1985$ $(SICA)$.

Interest paid by other than financial enterprises is shown in cash flow statement under ________________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Operating activities

  2. Investing activities

  3. Financing activities

  4. None of the above

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Correct Option: C

To guard against the dangers of excess payment arising out of double insurance or over insurance made by the insured, insurance companies provide in their agreement _________________.

commercial studies finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance introduction to business capital/finance

  1. Average clause

  2. Subrogation clause

  3. Risk clause

  4. Indemnity clause

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Correct Option: D