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SAI INTERNATIONAL SCHOOL
CLASS-XI

Sub: Business Studies
Chapter 7: Sources of Business Finance
Topic: Borrowed Funds & Debentures

(HOME ASSIGNMENT- 34)
ASSESSMENT MCQ

1. Funds raised through loans and borrowings are …………….
a) Owners’ Equity
b) Share Capital
c) Borrowed funds
d) None of these
2. Investors who want steady income may not prefer……………………
a) Bonds
b) Equity Shares
c) Debentures
d) None of these
3. Debenture holders are…………
a) Debtors of the Company
b) Creditors of the Company
c) Debtors of the Company
d) Owners of the Company

4. Debentures indicate the………………..
a) Short-term Borrowings of a Company
b) Directors’ shares in a company
c) The Investment of Equity-Shareholders
d) Long-term Borrowings of a Company
5. In debenture, interest payable is…………
a) Transferred to general reserve
b) Transferred to falling fund investment account
c) Charged against the firm’s profits
d) Appropriation of the company’s profits

HOME ASSIGNMENT

1 Mark Questions