1st Year Principles of Commerce Chapter 17 TestBusiness Finance

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. In Modaraba:

   1. Two persond invest money

   2. Both person invest money and labour

   3. One person invest money and the other invest labor and experience

   4. All of the above

2. Factors are the:

   1. Customers of business

   2. Servants of business

   3. debtors of business

   4. Persons who take responsibility of receiving money from debtors

3. Rate of interest in short term finance is:

   1. Less

   2. High

   3. Very high

   4. None of these

4. The sources of debt financing are:

   1. Running finance

   2. Cash credit

   3. Leasing

   4. All these

5. The certificates of Modaraba are:

   1. Non transferable

   2. Transferable

   3. Conditionally transferable

   4. All of the above

6. The responsibility of providing finance in modarba is on:

   1. Modarib

   2. Rab-ul-Maal

   3. Govt

   4. Both b and c

7. The time period of short time finance is:

   1. Two years

   2. More than one year

   3. One and half year

   4. One or less than one year

8. In Modaraba, the person who invests capital is called:

   1. Modarib

   2. Rab-ul-Mal

   3. Investor

   4. Businessman

9. The rate of interest in long time finance is:

   1. Less

   2. None

   3. More

   4. All are above

10. Business finance can be divided into following parts according to term:

    1. Four

    2. Two

    3. Three

    4. Six