Sources of Business Finance Test

Result

Sources of Business Finance Test - 11

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

In business, leverage is the means of ______________.

A
Increasing profits

B
Increasing output

C
Reducing cost

D
All of the above

Solution

Leverage means a business strategy of the Companies to increase the assets, cash flows, and returns, even losses can also be analyzed by using the strategy. There are two main types of leverage:-
1. Financial Leverage- A firm may borrow capital through issuing fixed securities or by borrowing money directly from a lender just to increase its financial leverage,
2. Operating Leverage- It is used to magnify cash flows and returns.
Hence, option (A) is the correct answer.

Question 2

1 / -0

Match the statements in List-I with the types of lease in the List-II as follows:

List - I	List - II
(a) Lessor transfers all risks and rewards of an asset to the lessee.	(i) Indirect lease
(b) Lessor transfers the assets to the lessee but bears the cost of maintenance	(ii) Operating lease
(c) The owner of the asset sells it to turn leases it back to the owner (now lesser)	(iii) Finance lease
(d) Lessor owns/ acquires the assets that are leased to a given lesser.	(iv) Direct lease

$$(a) - (ii), (b) - (iii), (c) - (iv), (d) - (i)$$

$$(a) - (i), (b) - (iv), (c) - (ii), (d) - (iii)$$

$$(a) - (iii), (b) - (ii), (c) - (i), (d) - (iv)$$

$$(a) - (iv), (b) - (i), (c) - (iii), (d) - (ii)$$

Question 3
1 / -0

The funds available with a company after paying all claims including tax and dividend is called _______.

A
new profit

B
net operating profit

C
capital profit

D
retained earnings

Solution

A company generally does not distribute all its earnings among the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as retained earnings. It is a source of internal financing or self-financing or ‘ploughing-back of profits’.
Question 4
1 / -0

Finally, the bonds and debentures (debt) can be issued at ___________.

A
Par

B
Discount

C
Premium

D
All the above

Solution

Bonds and Debentures can be issued at par, at a premium or at a discount. They can also be issued for consideration other than cash or as a collateral security.
Question 5
1 / -0

Unit Banking system was originated in __________.

A
USA

B
England

C
India

D
Pakistan

Solution

Unit Banking System refers to a single and usually small banks providing financial services to local people. Such banks do not have any connecting branches. The concept of Unit Banking System was originated in USA.
Question 6
1 / -0

What is the main disadvantage of branch banking system?

A
Problem of Management

B
Lack of Initiative

C
Monopolistic Tendencies

D
All of the above

Solution

Branch banking refers to banking activities such as accepting deposits and lending loans away from bank's home or main office. Since its branches are away from home, all of the above options would be a disadvantage of the branch banking system.
Hence, Option (D) is the correct answer.
Question 7
1 / -0

Industrial banks are also known as___________.

A
NABARD

B
RRB's

C
Morris bank

D
EXIM bank

Solution

Just as investment banks, industrial banks sell certificates that are labelled as investment share. This helps public to invest in such bonds and certificates through industrial banks. Hence, Industrial banks are also known as investment banks.
Question 8
1 / -0

Mixed banking system is found in _________.

A
India

B
U.S.A.

C
Germany

D
Soviet Russia

Solution

German banking system is the best example of mixed banking system. German banks perform large variety of functions which includes functions of a commercial bank as well as investment bank. These banks can also be called as universal banks.
Question 9
1 / -0

What is the Chief feature of the group banking system?

A
Centralised management

B
Decentralised management

C
Wide network of branches

D
All the above

Solution

Each member bank of the group banking system retains its separate entity and maintains its board of directors but however, the group banking system enjoy the benefits of centralized administration.
Question 10
1 / -0

What are the main functions of Industrial Banks?

A
They accept short-term deposits

B
They grant short-term loans to the industrialists

C
They provide locker facilities to the customers

D
They help selling or even underwrite the debentures and shares of industrial firms

Solution

Industrial banks sell investment certificates, debentures and shares for the purpose of investment. Because of its role as an investment bank, its main function is to provide facilities for people to invest in debentures and shares.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Sources of Business Finance Test - 11

Result

Sources of Business Finance Test - 11

Score

-

Rank

-

SHARING IS CARING

Question 1

Increasing profits

Increasing output

Reducing cost

All of the above

Solution

Question 2

$$(a) - (ii), (b) - (iii), (c) - (iv), (d) - (i)$$

$$(a) - (i), (b) - (iv), (c) - (ii), (d) - (iii)$$

$$(a) - (iii), (b) - (ii), (c) - (i), (d) - (iv)$$

$$(a) - (iv), (b) - (i), (c) - (iii), (d) - (ii)$$

Question 3

new profit

net operating profit

capital profit

retained earnings

Solution

Question 4

Par

Discount

Premium

All the above

Solution

Question 5

USA

England

India

Pakistan

Solution

Question 6

Problem of Management

Lack of Initiative

Monopolistic Tendencies

All of the above

Solution

Question 7

NABARD

RRB's

Morris bank

EXIM bank

Solution

Question 8

India

U.S.A.

Germany

Soviet Russia

Solution

Question 9

Centralised management

Decentralised management

Wide network of branches

All the above

Solution

Question 10

They accept short-term deposits

They grant short-term loans to the industrialists

They provide locker facilities to the customers

They help selling or even underwrite the debentures and shares of industrial firms

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.