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SAI INTERNATIONAL SCHOOL

CLASSS XI

SUBJECT: BUSINESS STUDIES

CHAPTER -7, Sources of business finance

Topics: Trade Credits, Factoring, Lease Financing, Factors

Affecting Choice of Funds

(HOME ASSIGNMENT-37)

Assignment.

Multiple questions.

1. Trade credit facilitates the purchase of supplies without immediate
payment. Such credit appears in the records of the buyer of goods as
___________.
(a) Sundry creditors
(b) Accounts payable
(c) Both a and b
(d) None of the above
2. Trade credit may be ________ in case the credit worthiness of the customers
is known to the seller;
(a) Evidence
(b) Validity
(c) Only a document
(d) Readily available
3. Under recourse factoring, the client is not protected against the risk of bad
debts.
(a) Expenses
(b) Transport
(c) Bad debt
(d) None of the above
4. The lessee pays a fixed periodic amount called________ to the lessor for the
use of the asset.
(a) Lease rental
(b) Commission