Question

EXERCISES

Multiple Choice Questions

Tick the correct answer out of the given alternatives

1. Equity shareholders are called

(a) Owners of the company
(b) Partners of the company
(c) Executives of the company
(d) Guardian of the company

2. The term redeemable' is used for

(a) Preference shares
(b) Commercial paper
(c) Equity shares
(d) Public deposits

3. Funds required for purchasing current assets is an example of

(a) Fixed capital requirement
(b) Ploughing back of profits
(c) Working capital requirement
(d) Lease financing

4. ADRs are issued in

(a) Canada
(b) China
(c) India
(d) USA

5. Public deposits are the deposits that are raised directly from

(a) The public
(b) The directors
(c) The auditors
(d) The owners

6. Under the lease agreement, the lessee gets the right to

(a) Share profits earned
(b) Participate in the management of the organisation
(c) Use the asset for a specified period
(d) Sell the assets

7. Debentures represent (b) Permanent capital of the

(a) Fixed capital of the company
(b) Permanent capital of the company
(c) Fluctuating capital of company the (d) loan capital of the company

8. Under the factoring arrangement, the factor

(a) Produces and distributes the goods or services (b) Makes the payment on behalf of the client
(c) Collects the client's debt or account receivables
(d)Tramsfer of the goods from one place to another

9. The maturity period of a commercial paper usually ranges from

(a) 20 to 40 days
(b) 60 to 90 days
(c) 120 to 365 days
(d) 90 to 364 days ​

Answer 1

Answer:

1.= owners of company2.=preference shares3.=working capital requirements.4.=usa5.= the public6.= asset of the lessor 7.=loan capital of the company.8.=Produces and distributes the goods or services. Makes the payment on behalf of the client. Collects the client's debt or account receivable.9 =90 to 364 day

Explanation:

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