
XII ISC - CHAP 3 - SOURCE OF FINANCE FOR JSC [24-25]
Quiz by Anita Sinha
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A business can generate funds internally by:
Non-payment of debt on time results in:
2. Equity share capital represents:
Unsecured debentures
Which source of finance is preferred by investors who want fixed income at lesser risk
Preference shareholders are called:
Which of the following is not the feature of preference shares:
Retained earnings is also known as:
Trade credits granted to those customers who have reasonable amount of:
Under the factoring arrangement, the factor
Investors who want steady income may not prefer
What do you mean by business finance:
holder do not receive a fixed amount of dividend, whereas ______ holder receives a fixed amount of dividend.
A public limited company proposes to increase its subscribed capital by offering new shares to employees at below market price. Such an issue is termed as:
Debentures which are transferable by mere delivery are:
Preference shares which are entitled to surplus profits of the company in addition to their share of fixed dividend are called as:
Assertion (A): Financing through debentures is less costly.
Reason (R): Debentures do not carry voting rights. Therefore, financing through debentures does not dilute control of equity shareholders on management.
Assertion (A): Tax benefits are available on dividend paid on preference shares.
Reason (R): Dividend paid on preference shares is an appropriation of profits.
Assertion(A): The control of the company is not diluted when they go for public deposits. Reason (R): The depositors are given minor voting rights to keep their preference inconsideration.
Assertion– Planning may not work in a dynamic environment.
Reason- Planning cannot foresee everything and thus, there may be obstacles to effective planning.
Assertion - Monitoring the plan is equally important to ensure that objective are achieved.
Reason - To see whether plans are being implemented and activities are performed according to schedule is also part of planning process.
Which is not a short term finance?
Dividend not paid in a particular year are carried forward to the next year.
Capital can be refunded to preference shareholders after expiry of a specified period.
Which is not related to equity shareholders?
Which is not a condition of bonus shares?
Which is the feature of right shares?
What is the full form of ESOP?
Callable debentures are.
Full form of SFC
Full form of SIDBI
The shares issued by a company to its directors or employees for consideration other than cash, having a lock in period of three years are called:
Which type of preference shareholders are entitled to get a share in the surplus profits of the company?
Unsecured long term source of loan raised by a company can be termed as:
The credit extended by one business firm to another incidental to sale or purchase of goods and services is called:
Which of the following is NOT a source of Bank Credit?
Raising finance through sale of book debts is called:
With reference to the types of debentures, choose the odd one out.
With reference to the disadvantages of Equity shares as a source of finance for a joint stock company, choose the odd one out.
One of the features of preference shares is:
The difference between shares and debenture is:
An advantage of borrowing funds from financial institutions is:
Which of the following statement is not true?
In order to raise an additional capital of Rs. 50 lacs, Yudhister Ltd has used debt because
Which of the following statements is not true?
A higher financial leverage ratio indicates that
As the financial leverage of a company increases, it leads to
When does the earnings per share (EPS) rise with higher debt?
Under which of the following situations a company should not issue debt capital?
What do you mean by business finance?