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Page 1: Check  your  Understanding  here…

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Sources of Business Finance

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1. Which of the following is an example for borrowed fund?

Preference shares Incorrect

All of theseIncorrect

Equity sharesIncorrect

Loan from bankCorrect

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Sources of Business Finance

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2. This is the part of profit which is set aside from the profit

Trade creditIncorrect

Commercial paperIncorrect

Public depositIncorrect

Retained earningsCorrect

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Sources of Business Finance

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3. Which of the following is an example for internal source of financing?

Public depositIncorrect

Equity sharesIncorrect

Retained earningsIncorrect

Option B&CCorrect

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Sources of Business Finance

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4. Funds required for purchasing current assets is an example of

Fixed capitalIncorrect

Lease financingIncorrect

Ploughing back of profits Incorrect

Working capitalCorrect

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Sources of Business Finance

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5. Debentures represent

Fixed CapitalIncorrect

Permanent capitalIncorrect

Working capitalIncorrect

Loan CapitalCorrect

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Sources of Business Finance


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