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Sources of Finance
Class 10
Exercise/MCQ Set 1
Sources of Finance
1. Which of the following is ownership securities ?
Preference shares
Debentures
Bonds
Stock Exchanges
2. __________ have priority for return of debt at the time of winding up of the company.
public deposits
equity shares
retained earnings
debentures
3. Which is NOT the function of the Capital Market.
It provides mechanism for transfer of claims on capital funds.
Balance between Demand and supply of capital
Securities used in the capital market are not easily negotiable
It provides profitable avenues to investors.
4. _________ carry voting rights.
Loans from commercial banks
Debentures
Equity Shares
Preference Shares
5. ____________ are real risk- bearers.
Equity shareholders
Debentureholders
preference shareholders
none of the above
6. An __________ is a kind of a temporary financial accomodation extended by a bank to its regular customers.
Term loan
Overdraft
Cash Credit
Discounting of bills of Exchanges
7. Debentures represent
Fixed capital of the company
Permanent capital of the company
Fluctuating capital of the company
Debt capital of the company
8. Which of the following is NOT a feature of Equity shares ?
Fix maturity
Having voting rights
Has a distinct number
It is a movable property
9. Which of the following is NOT the Short Term Finance
Inter corporate Deposits
Trade Credit
Retained Earnings
Commercial Banks
10. __________ are generally secured by assets or guarantees.
Cash credit
Overdraft
Discounting of bills
Loans
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