Question 1.
Sources of finance can be categorised as _____________
(a) Source of Generation Basis
(b) Period Basis
(c) Ownership
(d) All of the above

Answer

Answer: (d) All of the above

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Question 2.
Expand ADR
(a) American Depository Receipts
(b) American Direct Receipts
(c) American Domestic Receipts
(d) None of the above

Answer

Answer: (a) American Depository Receipts

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Question 3.
Industrial Finance Corporation of India (IFCI) was established in _______
(a) July 1948
(b) July 2001
(c) July 1956
(d) July 1991

Answer

Answer: (a) July 1948

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Question 4.
_________ is an example of short term finance
(a) Trade Credit
(b) Debenture
(c) Share
(d) None of the above

Answer

Answer: (a) Trade Credit

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Question 5.
__________ was the first company in India to issue convertible zero interest debentures in January 1990
(a) Reliance Limited
(b) Adani Enterprise
(c) Tata Motors
(d) Mahindra and Mahindra

Answer

Answer: (d) Mahindra and Mahindra

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Question 6.
Expand GDR
(a) Global Depository Receipts
(b) Gross Domestic Receipts
(c) Government Direct Receipts
(d) None of the above

Answer

Answer: (a) Global Depository Receipts

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Question 7.
Money obtained by issue of shares is known as ___________
(a) Debts
(b) Loans
(c) Reserve Funds
(d) Share Capital

Answer

Answer: (d) Share Capital

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Question 8.
A person who purchases the common stock of a corporation is known as:
(a) Preferred stockholder
(b) Creditor
(c) Bondholder
(d) Common stockholder

Answer

Answer: (d) Common stockholder

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Question 9.
ICICI was established in _________________
(a) 1985
(b) 1975
(c) 1965
(d) 1955

Answer

Answer: (d) 1955

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Question 10.
Commercial papers can be issued only by large and creditworthy companies because
(a) It is protected by the Government
(b) It is an Unsecured Debt
(c) It is Fully Secured Debt
(d) None of the above

Answer

Answer: (b) It is an Unsecured Debt

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Question 11.
Which of the following is a commercial bank?
(a) Punjab National Bank
(b) Canara bank
(c) State Bank of India
(d) All of the above

Answer

Answer: (d) All of the above

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Question 12.
State Industrial Development Corporations were established by _______
(a) Ministry of Finance
(b) the Different States
(c) Central Government
(d) None of the above

Answer

Answer: (b) the Different States

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Question 13.
Under the lease agreement, the lessee gets the right to
(a) Use the asset for a specified period
(b) Share profits earned by the lessor
(c) Sell the assets
(d) Participate in the management of the organisation

Answer

Answer: (a) Use the asset for a specified period

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Question 14.
When one party grants the other party the right to use the asset in return for a periodic payment, it is known as __________
(a) Lease Financing
(b) Public Deposits
(c) Debts
(d) Factoring

Answer

Answer: (a) Lease Financing

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Question 15.
The term ‘redeemable’ is used for
(a) Public deposits
(b) Commercial paper
(c) Equity shares
(d) Preference shares

Answer

Answer: (b) Commercial paper

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Question 16.
Funds raised through loans and borrowings are ________
(a) Owners Equity
(b) Share Capital
(c) Borrowed funds
(d) None of the above

Answer

Answer: (c) Borrowed funds

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Question 17.
Expand ICICI
(a) Indian Credit and Investment Corporation of India
(b) International Credit and Investment Corporation of India
(c) Industrial Credit and Investment Corporation of India
(d) None of the above

Answer

Answer: (c) Industrial Credit and Investment Corporation of India

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Question 18.
Internal sources of capital are those that are
(a) Generated through outsiders such as suppliers
(b) Generated through the issue of shares
(c) Generated through a loan from commercial banks
(d) Generated within the business

Answer

Answer: (d) Generated within the business

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Question 19.
Life insurance corporation was set up in ________
(a) 1985
(b) 1975
(c) 1956
(d) 1965

Answer

Answer: (c) 1956

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Question 20.
Debentures represent
(a) Fixed capital of the company
(b) Fluctuating capital of the company
(c) Loan capital of the company
(d) Permanent capital of the company

Answer

Answer: (c) Loan capital of the company

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Question 21.
Dividend is paid only on ___________
(a) Bonds
(b) Debentures
(c) Shares
(d) Loans

Answer

Answer: (c) Shares

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Question 22.
The maturity period of a commercial paper usually ranges from
(a) 120 to 365 days
(b) 60 to 90 days
(c) 90 to 364 days
(d) 20 to 40 days

Answer

Answer: (c) 90 to 364 days

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Question 23.
Investors who want steady income may not prefer ____________
(a) Bonds
(b) Equity Shares
(c) Debentures
(d) None of the above

Answer

Answer: (b) Equity Shares

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