CHAPTER 8 : Sources of Business Finance NCERT MCQ CLASS 11TH BUSINESS STUDIES | EDUGROWN
NCERT MCQ ON Sources of Business Finance :
Q.1 Hindu Succession Act was passed in_______
(a) 1960
(b) 1956
(c) 1952
(d) 1932
Answer
(b) 1956
Q.2 A prospectus is issued by
(a) Public company
(b) Private company
(c) Statutory Corporation
(d) Departmental undertaking
Answer
(a) Public company
Q.3 A partner whose association with the firm is unknown to the general public is called
(a) Active partner
(b) Nominal partner
(c) Secret partner
(d) Sleeping partner
Answer
(c) Secret partner
Q.4 Unit Trust of India was established by ________
(a) ICICI
(b) State Bank Group
(c) Indian Government
(d) HDFC Bank
Answer
(c) Indian Government
Q.5 ICICI was established in ________
(a) 1975
(b) 1955
(c) 1985
(d) 1965
Answer
(b) 1955
Q.6 Expand ICICI
(a) None of these
(b) International Credit and Investment Corporation of India
(c) Indian Credit and Investment Corporation of India
(d) Industrial Credit and Investment Corporation of India
Answer
(d) Industrial Credit and Investment Corporation of India
Q.7 Which of the following forms of business enterprises suffer from a lack of public confidence because they are not required to publish their accounts legally?
(a) Partnership
(b) Cooperative Society
(c) Company
(d) None of the above
Answer
(a) Partnership
Q.8 A company cannot come into existence without
(a) Issuing prospectus
(b) Electing directors
(c) Certificate of incorporation
(d) All of the above
Answer
(c) Certificate of incorporation
Q.9 Every partner is both an agent and a principal. Identify the characteristic of the partnership being referred here.
(a) Mutual Agency
(b) Risk Bearing
(c) Membership
(d) Formation
Answer
(a) Mutual Agency
Q.10 Which of the following is not a feature of a Joint Stock Company?
(a) Artificial person
(b) Separate legal entity
(c) Formation
(d) Lack of business continuity
Answer
(d) Lack of business continuity
Q.11 The life of sole proprietorship business is ________
(a) Very short life
(b) Stable
(c) Long life
(d) Unstable
Answer
(d) Unstable
Q.12 The partnership deed generally includes the following
(a) Name of firm
(b) Nature of business
(c) Location of business
(d) All of the above
Answer
(d) All of the above
Q.13 Which of the following contract is signed by the promoters with the third party on behalf of the proposed company?
(a) Preliminary contracts
(b) Provisional contract
(c) Prospectus
(d) Memorandum of association
Answer
(a) Preliminary contracts
Q.14 Which one of the following is the CORRECT sequence of stages in the formation of a company?
(a) Promotion, incorporation, capital subscription, the commencement of business
(b) Incorporation, capital subscription, promotion, the commencement of business
(c) Promotion, the commencement of business, incorporation, capital subscription
(d) Promotion, Incorporation, Certificate of commencement, capital subscription
Answer
(a) Promotion, incorporation, capital subscription, the commencement of business
Q.15 Which of the following business enterprises does not have a separate legal entity?
(a) Sole Proprietorship
(b) Partnership
(c) Company
(d) Cooperative Society
Answer
(a) Sole Proprietorship
Q.16 _________ company does not invite the public to subscribe to its share capital.
(a) Both Private and Public Company
(b) Public Company
(c) Private Company
(d) None of the above
Answer
(c) Private Company
Q.17 ADRs are issued in
(a) Canada
(b) China
(c) India
(d) USA
Answer
(d) USA
Q.18 The term ‘redeemable’ is used for
(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits
Answer
(b) Commercial paper
Q.19 Which of the following cooperative society is established to help small producers in selling their products?
(a) Producer cooperative society
(b) Marketing cooperative society
(c) Credit cooperative society
(d) Consumers cooperative society
Answer
(a) Producer cooperative society
Q.20 Investors who want steady income may not prefer ________
(a) None of these
(b) Debentures
(c) Equity Shares
(d) Bonds
Answer
(c) Equity Shares
Q.21 GDRs can be converted into shares ___________
(a) At any time
(b) After 5 years
(c) After 10 years
(d) After one year
Answer
(a) At any time
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