WORKSHEET 7 BUSINESS STUDIES (CLASS 11) SOURCES OF BUSINESS FINANCE

Chapter 8 sources of business finance (Term2)

1.   1.   Business finance refers to the -------- which is required for purchase and maintenance of all assets along with other overhead expenses.  

a)     Cash

b)    Money

c)     Resources

d)    Loans and investments.

2.     2. Funds required by a business to purchase land, building, plant and machinery, furniture and fixtures, etc are known as ------  

a)    Fixed capital requirement

b)    Floating capital requirement

c)     Long term investment

d)    Short term investment

3.   3.   What type of a fund is trade credit?

a) Short term

b) long term

c) medium term

d) fixed capital fund

4. A debenture is a form of -------------- 

a) owned capital

b) borrowed capital

c) retained earnings

d) long term borrowings.

5. working capital requirement is the funds which is needed to buy --------

a) fixed assets

b) current assets

c) floating assets

d) liquid assets 

6. An unsecured promissory note  used in India since 1990 by corporate buyers  who are   highly rated is called as ------------

a) trade bill

b) commercial paper

c) treasury bill

d) call money

7. --------------   are short-term instruments issued by the Reserve Bank on behalf of the government to tide over short-term liquidity shortfalls. 

a) trade bill

b) commercial paper

c) treasury bill

d) call money

8. Debenture holders are considered to be ------------ 

a) debtors

b) creditors

c) owners

d) money lenders

9. The extension and provision of credit by one one trader to another for the purchase of goods and services, or other supplies without on the spot payment is called -------------

a) Trade credit.

b) cash credit.

c) commercial paper

d) e-credit.

10. Short term funds are funds which are required for a period not exceeding ----- 

a) one year

b) two years

c) three years

d) five years.