Tag: elements of business

Questions Related to elements of business

Long-term sources of finance includes ____________.

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. Debentures

  2. Long-term borrowings

  3. Loans from financial institutions

  4. All of the above

Show answer
Correct Option: D
Explanation:

The long-term sources fulfil the financial requirements of an enterprise for a period exceeding 5 years and include sources such as shares and debentures, long-term borrowings and loans from financial institutions.

Such financing is generally required for the acquisition of fixed assets such as equipment, plant, etc.

The funds required for a period of more than one year but less than five years is called ____________.

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. long-term finance

  2. medium-term finance

  3. short-term finance

  4. none of the above

Show answer
Correct Option: B
Explanation:

The classification of sources of funds on the basis of period are related to the duration of time. The medium-term sources of funds are the ones that provide financing for a time period of more than a year and not exceeding five years of time.

Long-term financing is generally required for the acquisition of _________.

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. Current assets

  2. Fixed assets

  3. Fictitious asset

  4. All of the above

Show answer
Correct Option: B
Explanation:

Long-term finance is that which is required for a long period of time, i.e. no less than 5 years . These long-term sources are generally required for the acquisition of fixed assets as these fixed assets are purchased for a long period and are also very expensive than current assets. 

Funds required for period exceeding 5 years is _______.

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. Long-term financing

  2. Short-term financing

  3. Medium-term financing

  4. All of the above

Show answer
Correct Option: A
Explanation:

The funds that are required for a long period of time are known as long-term financing. These types of financing is required for a period exceeding 5 years.

Wipro was founded in _______.

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. 1948

  2. 1958

  3. 1945

  4. 1968

Show answer
Correct Option: C
Explanation:

Wipro is a multinational corporation of India. It is mainly a company based on information technology and business process services. Wipro was founded in 1945. Headquater of Wipro is in Bangalore.

SSI Sector contributes __________ of the Indian Exports.

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. $25\% - 30\%$

  2. $15\% - 20\%$

  3. $45\% - 50\%$

  4. $95\% - 100\%$

Show answer
Correct Option: C
Explanation:

SSI Sector contributes 45-50% of the Indian Exports. SSI stands for Small Scale Industry. Small scale industries refer to those industries where production process is carried on a small scale or micro scale.

The abbreviation of 'AGM' stands for_________.

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. Arranged General Meeting

  2. Annual General Meet

  3. Annual General Meeting

  4. Arranged General Meet

Show answer
Correct Option: C
Explanation:

The abbreviation of 'AGM' stands for Annual General Meeting. It refers to the meeting of shareholders and other members who are associated with the company.

Ethics has become the buzzword in the corporate world because of_________.

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. Globalization

  2. Communications explosion

  3. Explosion

  4. Both (a) & (b)

Show answer
Correct Option: D
Explanation:

Ethics has become the buzzword in the corporate world because of both globalization and communications explosion. Globalization refers to the process of integration of world economies into a village economy.

Which of the following traditional village industries possess the highest labour productivity?

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. Handicrafts

  2. Sericulture

  3. Coir

  4. All of the above

Show answer
Correct Option: A
Explanation:

 Handicraft is the traditional village industries possess the highest labour productivity. It means because of handicraft industry many people from the rural areas can get employed.

Which information technology company began as an edible oil 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. Infosys

  2. Microsoft

  3. IBM

  4. Wipro

Show answer
Correct Option: D
Explanation:

 Wipro, being an information technology company began as an edible oil firm. Edible oil is mainly used for the cooking purpose. Wipro is a multinational corporation of India.