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Business Studies MCQ Class 11 Chapter 8

1. State Industrial Development Corporations were established by _______.
(a) Ministry of Finance
(b) The different states
(c) Central Government
(d) None of these

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

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

4. Funds raised through loans or borrowings are ________.
(a) Borrowed funds
(b) Owners equity
(c) Share capital
(d) None of these

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

6. Internal sources of capital are those that are
(a) generated through outsiders such as suppliers
(b) generated through loans from commercial banks
(c) generated through issue of shares
(d) generated within the business

7. Funds required for purchasing current assets is an example of ______.
(a) Fixed capital requirement
(b) Ploughing back of profits
(c) Working capital requirement
(d) Lease financing

8. Equity shareholders are called _____.
(a) Owners of the company
(b) Partners of the company
(c) Executives of the company
(d) Guardian of the company

9. Under the factoring arrangement, the factor
(a) Produces and distributes the goods or services
(b) Makes the payment on behalf of the client
(c) Collects the client’s debt or account receivables
(d) Transfer the goods from one place to another

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

11. When one party grants the right to use the asset to the other party, in return for a periodic payment, it is known as ________.
(a) Lease financing
(b) Factoring
(c) Public deposits
(d) Debts

12. The ordinary shares of a company are delivered to the depository bank, which in turn issues the depository receipts, known as _______.
(a) Commercial banks
(b) ADR – American Depositary Receipt
(c) GDR – Global Depository Receipt
(d) None of these

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

14. Under the factoring arrangement, the factor _____.
(a) Produces and distributes the goods or services
(b) Makes the payment on behalf of the client
(c) Collects the client’s debt or account receivables
(d) Transfer the goods from one place to another

15. Expand ICICI.
(a) Industrial Credit and Investment Corporation of India
(b) International Credit and Investment Corporation of India
(c) Indian Credit and Investment Corporation of India
(d) None of these

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