Sources of Business Finance Test

Result

Sources of Business Finance Test - 29

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Weekly Quiz Competition

Question 1
1 / -0

Debenture holders are paid _________ stated amount of interest at specified intervals.

A
fixed

B
fluctuating

C
higher

D
lower

Solution

Debenture holders are paid a fixed stated amount of interest at specified intervals. Public issue of debentures requires that the issue be rated by a credit rating agency.
Question 2
1 / -0

Equity shareholders are companies original owner. So the properties of company belongs to the Equity shareholders. Do you agree with this statement?

A
Yes

B
No

C
Sometimes yes

D
Sometimes no

Solution

Company owners are not ordinary shareholders but equity shareholders, which is also known as owner's share capital. So the company property belongs to the equity shareholders after paying the external liabilities.
Question 3
1 / -0

Debentures that are repaid before other debentures are repaid are known as ________ debentures.

A
convertible

B
non-convertible

C
first

D
second

Solution

Debentures that are repaid before other debentures are repaid are known as first debentures. First debenture holders have the right over the company's asset at first.
Question 4
1 / -0

_____________ are an important source of financing non-trade international operations.

A
Commercial Banks

B
International Agencies and Development Banks

C
International Capital Market

D
Both A and B

Solution

Commercial Banks are an important source of financing non-trade international operations. Commercial banks all over the world extend foreign currency loans for business purposes.
Question 5
1 / -0

Which of the following are forms of international financing?

A
Commercial Banks

B
International Agencies and Development Banks

C
International Capital Market

D
All of the above

Solution

With the opening up of an economy and the operations of the business organisations becoming global, Indian companies have an access to funds in global capital market. Various international sources from where funds may be generated include Commercial Banks, International Agencies and Development Banks, International Capital Market.
Question 6
1 / -0

International Agencies and Development Banks provide ________ and ________ term loans.

A
long, short

B
long, medium

C
short, medium

D
both a and b

Solution

International agencies and Development banks provide long term and medium term loans to promote the development of economically backward areas in the world. These bodies were set up by the governments of developed countries in the world at national, regional and international level.
Question 7
1 / -0

The _______ debentures are those which are paid after the first debentures have been paid back.

A
Secured

B
Unsecured

C
First

D
Second

Solution

The second debentures are those which are paid after the first debentures have been paid back. Second debenture holders have the secondary charge over the company's assets.
Question 8
1 / -0

__________ debentures are those debentures that can be converted into equity shares after the expiry of a specified period.

A
Secured

B
Unsecured

C
Registered

D
Convertible

Solution

Debentures are an important instrument to raise long term debt capital. They are issued by a company and bear a fixed rate of interest and the company promises to pay the debt at a future date. The debentures that can be converted into equity shares within a specified period of time are known as convertible debentures.
Question 9
1 / -0

As fixed charge instruments, debentures put a _________ burden on the earnings of a company.

A
Permanent

B
Temporary

C
Higher

D
Lower

Solution

Debentures bear a fixed rate of interest to be paid at a future date to the creditors. As fixed charge instruments, debentures put a permanent burden of interest payments on the earnings of a company.
Question 10
1 / -0

The debentures which cannot be converted into equity shares are called ___________ debentures.

A
Secured

B
Unsecured

C
Convertible

D
Non-convertible

Solution

Debentures are given out to the creditors as a promise to repay the debt held by the company at a fixed rate of interest. Some of the debentures are convertible and non-convertible. The debentures which cannot be converted into equity shares are called as non-convertible debentures.

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Re-Attempt Weekly Quiz Competition

Sources of Business Finance Test - 29

Result

Sources of Business Finance Test - 29

Score

-

Rank

-

SHARING IS CARING

Question 1

fixed

fluctuating

higher

lower

Solution

Question 2

Yes

No

Sometimes yes

Sometimes no

Solution

Question 3

convertible

non-convertible

first

second

Solution

Question 4

Commercial Banks

International Agencies and Development Banks

International Capital Market

Both A and B

Solution

Question 5

Commercial Banks

International Agencies and Development Banks

International Capital Market

All of the above

Solution

Question 6

long, short

long, medium

short, medium

both a and b

Solution

Question 7

Secured

Unsecured

First

Second

Solution

Question 8

Secured

Unsecured

Registered

Convertible

Solution

Question 9

Permanent

Temporary

Higher

Lower

Solution

Question 10

Secured

Unsecured

Convertible

Non-convertible

Solution

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Score

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