Tag: elements of business

Questions Related to elements of business

_______ is a growing and cost effective solution that more and more companies use.

elements of business recent trends in marketing product life cycle e-marketing role of a marketer definition and functions of purchasing and storage department purchasing and stores

  1. Telemarketing

  2. Telesales

  3. Internet Marketing

  4. Retailing

Show answer
Correct Option: A

Which of the following is/are the benefit(s) of telemarketing?

elements of business recent trends in marketing product life cycle e-marketing role of a marketer definition and functions of purchasing and storage department purchasing and stores

  1. Telemarketing takes the time and cost out of finding new customers.

  2. Telemarketing provides customer satisfaction and often exceeds the needs of the customer.

  3. Canvas existing customers to reveal buying trends, or the potential for new business.

  4. All of the above

Show answer
Correct Option: D

The purpose of internal marketing is _____.

elements of business recent trends in marketing product life cycle e-marketing role of a marketer definition and functions of purchasing and storage department purchasing and stores

  1. increase employee engagement

  2. fostering brand advocacy

  3. promotion of company's objectives

  4. all of the above

Show answer
Correct Option: D

The term 'funds' as used in fund flow statement means ________________.

elements of business statement of changes in financial position preparation of cash flow statement cash flow statement finance

  1. Cash

  2. Current assets

  3. Current liabilities

  4. Current assets and liabilities

Show answer
Correct Option: B
Explanation:

Fund flow statement is a statement of cash inflows and cash outflows. There are persons who feel that the funds are cash or working capital which represent the excess of current assets over current liabilities. The term flow means movement and includes both inflows and outflows of resources.And the funds used in the flow statement is a current assets.

When a new company is formed to take over the business of an existing company it is known as _____________ .

elements of business introduction to book keeping and accounting meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

  1. Amalgmation

  2. Absorption

  3. Internal Reconstruction

  4. External Reconstruction

Show answer
Correct Option: D
Explanation:

When a new company is formed to take over the existing company's business it is external reconstruction while when the company reorganizes itself and reworks on its capital and other liabilities and other assets it refers to internal reconstruction.No company is dissolved in case of internal reconstruction.

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

elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

  1. The public

  2. The directors

  3. The auditors

  4. The owners

Show answer
Correct Option: A
Explanation:

Public deposits refer to the deposits that are raised by the company or an organization directly from the public. Public deposits are an important source of financing the medium term and long term requirements of a company.

Which of the following is true with respect to sources and uses of funds?

elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

  1. Depreciation and decrease in NWC are sources of funds

  2. Depreciation and decrease in NWC are uses of funds

  3. Depreciation is a source of fund but decrease in NWC is use of fund

  4. Depreciation in a use of fund but decrease in NWC is source of fund.

  5. Depreciation and increase in NWC are uses of funds.

Show answer
Correct Option: A
Explanation:

As per the accounting principles to ascertain the profits of the firm, depreciation on fixed assets should be charged against the revenue of the fir by debiting to the profit and loss account. This reduces the profits of the firm. But charging depreciation does not involves any fund. Therefore, the amount of depreciation charged against the revenue of the firm should be  added back to the net profit to estimate the funds from operations, which is a source of fund. Decrease in net working capital is a source of fund.

$\frac{Shareholder's funds}{total assets}\100$ is a ____________.

elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

  1. liquidity ratio

  2. solvency ratio

  3. profitability ratio

  4. credibility ratio

Show answer
Correct Option: B
Explanation:

Share holder's funds = equity share capital + Pref. shares + reserves and surplus - losses
Share holder's fund = net worth = proprietary fund = equity
Equity share holder's fund = share holders fund - pref. shares.

Find the correct match of finance organization and their headquarters?

elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

  1. ADB-Manila

  2. RBI-New Delhi

  3. IMF-NewYork

  4. IDA-Geneva

Show answer
Correct Option: A

The Principal sources of capital at the earliest stages of the firm ______________.

elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

  1. Equity capital

  2. Short term debts

  3. Long term debts

  4. Both (a) and (b)

Show answer
Correct Option: D