Tag: classification of sources of finance

Questions Related to classification of sources of finance

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. $95\% - 100\%$

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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

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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

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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.

Few sellers is a feature 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. monopoly

  2. perfect competition

  3. monopolistic competition

  4. oligopoly

Show answer
Correct Option: D
Explanation:
Meaning of Oligopoly:
Oligopoly refers to a market situation or a type of market organisational in which a few firms control the supply of a commodity. The competing firms are few in number but each one is large enough so as to be able to control the total industry output and a moderate. However, increase of its output or sales will reduce the sales of rival firms by a noticeable amount.
This is surely the case if three to six or even ten firms control an industry’s output, with each controlling enough to exert influence on price. Oligopoly is the most prevalent form of market organisation in the manu¬facturing sector at modern times and arises due to various reasons (such as, economies of scale, patents and trademarks, control over the sources of raw materials, government’s sanction, need of a large capital, and so on). The chief characteristic of oligopoly is the interdependence among the rival sellers.
Types of Oligopoly:
Oligopoly is of two types:
(a) Pure oligopoly
Here, the oligopolists sell practically homogeneous products. This type is found in steel, copper, cement petrol and a few other industries.
(b) Differential Oligopoly:
In such a case a few firms sell similar but not identical products under the same conditions. It is found in automobiles, tyres, electrical appliances, cigarettes, baby food and a few other industries.

Investors are expected to open _________ account with depository participants and deposit their share certificates for the purpose of converting them to the electronic format.

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. remat

  2. demat

  3. deposit

  4. current

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Correct Option: B
Explanation:

Investors are expected to open demat account with depository participants and deposit their share certificates for the purpose of converting them to the electronic format. Demterialized account is known as demat account. It helps to covert physical form of shares to electronic form.

Transactional Analysis can give employees fresh insights into their own personalities.

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. True

  2. False

  3. Partly true

  4. Partly false

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Correct Option: A
Explanation:

Transactional Analysis can give employees fresh insights into their own personalities- this is a true statement. There are 3 ego states in transactional  analysis. It also helps the employees to understand the behaviour of others.