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Class 11 Sources of Business Finance worksheet
CBSE Business Studies. Owner’s and borrowed funds, retained earnings, trade credit, factoring, leasing, public deposits, commercial paper, shares, debentures, banks and GDRs. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
The part of profit kept in the business instead of being distributed is:
- commercial paper
- public deposit
- trade credit
- retained earnings
Answer
(d) retained earnings
- 2.
What is meant by “lease financing”?
- paying rent to use an asset owned by another
- shares with a fixed dividend paid before equity
- instruments of debt with a fixed rate of interest
- a short-term unsecured promissory note
Answer
(a) paying rent to use an asset owned by another
- 3.
A firm keeps back this year’s profit to buy new machines. Which source of finance is being used?
- financial institutions
- trade credit
- retained earnings
- factoring
Answer
(c) retained earnings
Section B · short answer
- 4.
What is meant by business finance?
Answer
The money needed to start a business and carry on its activities.
- 5.
Explain each term: (a) debentures (b) preference shares
Answer
(a) instruments of debt with a fixed rate of interest (b) shares with a fixed dividend paid before equity
Section C · long answer
- 6.
Explain the classification of sources of finance.
Answer
By period: long, medium and short term; by ownership: owner’s funds and borrowed funds; by source of generation: internal and external.
Fresh sheets for your child
In the app, every Sources of Business Finance sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
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