Sources of Business Finance: Trade Credit, Factoring, Banks and Commercial Papers

In this quiz, you will find questions related to the different sources of business financing, the need for it, and its different sources.

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Industrial Finance Corporation of India (IFCI) was established in _______

July, 1948 July, 2001 July, 1956 July, 1991

Life insurance corporation was set up in ________

1965 1956 1975 1985

State Industrial Development Corporations were established by _______

Ministry of Finance None of these Central Government Different States

GDRs can be converted into shares _____________

At any time After 5 years After 10 years After one year

Funds raised through loans or borrowings are ________

Borrowed funds Owners Equity None of these Share Capital

When one party grants the other party the right to use the asset in return for a periodic payment, it is known as __________

Lease Financing Factoring Public Deposits Debts

Money obtained by issue of shares is known as ___________

Debts Share Capital Loans Reserve Funds

Expand ADR?

American Depository Receipts

American Direct Receipts

American Domestic Receipts

None of these

The maturity period of a commercial paper usually ranges from______________

120 to 365 days

60 to 90 days

90 to 364 days

20 to 40 days

Debentures represent_____________

Fixed capital of the company

Fluctuating capital of the company

Loan capital of the company

Permanent capital of the company

Internal sources of capital are those that are_____________

Generated through outsiders such as suppliers

Generated through the issue of shares

Generated through a loan from commercial banks

Generated within the business

Expand ICICI_______________

Indian Credit and Investment Corporation of India

International Credit and Investment Corporation of India

Industrial Credit and Investment Corporation of India

None of these

Under the factoring arrangement, the factor?

Produces and distributes the goods or services

Makes the payment on behalf of the client

Collects the client’s debt or account receivables

Transfer the goods from one place to another

Under the lease agreement, the lessee gets the right to?

Share profits earned by the lessor

Participate in the management of the organization

Use the asset for a specified period

Sell the assets

The term ‘redeemable’ is used for____________

Preference shares

Commercial paper

Equity shares

Public deposits

Quiz/Test Summary
Title: Sources of Business Finance: Trade Credit, Factoring, Banks and Commercial Papers
Questions: 15
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