Commerce Exam  >  Commerce Tests  >  Entrepreneurship Class 12  >  Test: Resource Mobilization- 2 - Commerce MCQ

Test: Resource Mobilization- 2 - Commerce MCQ


Test Description

15 Questions MCQ Test Entrepreneurship Class 12 - Test: Resource Mobilization- 2

Test: Resource Mobilization- 2 for Commerce 2024 is part of Entrepreneurship Class 12 preparation. The Test: Resource Mobilization- 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Resource Mobilization- 2 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Resource Mobilization- 2 below.
Solutions of Test: Resource Mobilization- 2 questions in English are available as part of our Entrepreneurship Class 12 for Commerce & Test: Resource Mobilization- 2 solutions in Hindi for Entrepreneurship Class 12 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Resource Mobilization- 2 | 15 questions in 15 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Entrepreneurship Class 12 for Commerce Exam | Download free PDF with solutions
Test: Resource Mobilization- 2 - Question 1

Susan and Joseph are partners in a firm of car manufacturing. They are planning to merge their firm SJ Ltd. with a retain car seller in order to expand their business and maximize the profits. For this merger, SJ Ltd. need a short-term loan. They have chosen Trade credit to finance them for this merger to take place. State whether trade credit being a short-term funding way is true or false. 

Detailed Solution for Test: Resource Mobilization- 2 - Question 1

Trade credit means many things but the simplest definition is an arrangement to buy goods and/or services on account without making immediate cash or cheque payments. Trade credit is a helpful tool for growing businesses, when favourable terms are agreed with a business's supplier.
For example, a customer is granted credit with terms of 4/10, net 30. This means that the customer has 30 days from the invoice date within which to pay the seller.
Trade credit extended to a customer by a firm appears as accounts receivable. Browse hundreds of guides and resources.

Test: Resource Mobilization- 2 - Question 2

During an interview, the HR of MultiCorp. Ltd. asked one of the candidates if the set-up finance is the capital required by an entrepreneur to conduct research at pre-commercialization stage. He responded by agreeing to the statement. Mention whether the candidate’s response was true or false.  

Detailed Solution for Test: Resource Mobilization- 2 - Question 2

The Pre-commercialization Phase involves the transition from design and development, and validation, to the execution of the launch.  However, the Pre-commercialization Phase is critical for large, complex programs with many elements that have to be timed perfectly at launch.

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Resource Mobilization- 2 - Question 3

Suhani used to sell vegetables in a cart with her sister. They were able to earn profit of ` 300 per day. Even though the amount was sufficient for their living, but they wanted to earn more. In order to expand the business and arrange funds, Suhani contacted an angel investor in her locality. Suhnai contacted Angel Investor because as per the view of Suhani, Angel investors provide funds to small businesses. State whether her view point is true or false. 

Detailed Solution for Test: Resource Mobilization- 2 - Question 3

An angel investor (also known as a private investor, seed investor or angel funder) is a high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur's family and friends.
For example, let's say that John Doe has an idea for a way to power widgets with small, flexible solar panels rather than electricity. He needs to build a prototype and form a business in order to capitalize on the idea and begin selling the product. John finds Ralph Jones, an angel investor.

Test: Resource Mobilization- 2 - Question 4

Given below are the sources of funds in Column 1 and their definition in Column 2. Match the correct source with its definition.

Detailed Solution for Test: Resource Mobilization- 2 - Question 4

Correct Match:

Test: Resource Mobilization- 2 - Question 5

Given below are the type of financing in Column 1 and their definition in Column 2. Match these accordingly. 

Detailed Solution for Test: Resource Mobilization- 2 - Question 5

Correct Match:

Test: Resource Mobilization- 2 - Question 6

State Whether the Following Statements are True or False.
Q. In March, 1996 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.

Detailed Solution for Test: Resource Mobilization- 2 - Question 6

In 1988, Sebi was constituted as the regulator of capital markets in India. Initially, Sebi was a non-statutory body without any statutory power. Following the passage of the Sebi Act by Parliament in 1992, it was given autonomous and statutory powers.
It regulates the operations of depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.

Test: Resource Mobilization- 2 - Question 7

State Whether the Following Statements are True or False.
Q. Capital Markets play a very vital role of a financial intermediary.

Detailed Solution for Test: Resource Mobilization- 2 - Question 7
  • Financial intermediaries move funds from parties with excess capital to parties needing funds.
  • The process creates efficient markets and lowers the cost of conducting business.
  • For example, a financial advisor connects with clients through purchasing insurance, stocks, bonds, real estate, and other assets.
Test: Resource Mobilization- 2 - Question 8

State Whether the Following Statements are True or False.
Q. Volume is nothing but quantity of shares.

Detailed Solution for Test: Resource Mobilization- 2 - Question 8
  • Volume is the number of shares of a security traded during a given period of time.
  • Volume is an important indicator in technical analysis because it is used to measure the relative significance of a market move
  • Calculating volume is simply the total amount of shares traded for the day, which includes both buy and sell orders.
Test: Resource Mobilization- 2 - Question 9

State Whether the Following Statements are True or False.
Q. Startup finance is the capital required by an entrepreneur for conducting research at pre commercialization stage.

Detailed Solution for Test: Resource Mobilization- 2 - Question 9

Financing for the start-up phase involves bridge financing from the time the pre-launch phase is funded until operations commence, sufficient working capital for the smooth operation of the business, funding of any losses during the start-up phase and contingency funds in case of an unexpected interruption in the start-up process. Funding for the pre-launch stage and the start-up phase may occur at the same time.

Test: Resource Mobilization- 2 - Question 10

State Whether the Following Statements are True or False.
Q. Secondary capital market deals with buying and selling of new securities.

Detailed Solution for Test: Resource Mobilization- 2 - Question 10

The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.

Test: Resource Mobilization- 2 - Question 11

State Whether the Following Statements are True or False.
Q. Seed capital finance refers to the capital required by an entrepreneur for conducting research at precommercialization stage.

Detailed Solution for Test: Resource Mobilization- 2 - Question 11
  • The term seed capital refers to the type of financing used in the formation of a startup.
  • Funding is provided by private investors usually in exchange for an equity stake in the company or for a share in the profits of a product.
Test: Resource Mobilization- 2 - Question 12

State Whether the Following Statements are True or False.
Q. Angel investor’s objective is to create great companies by providing value creation.

Detailed Solution for Test: Resource Mobilization- 2 - Question 12
  • Angel investors are wealthy individuals who provide capital to help entrepreneurs and small businesses succeed.
  • These individuals want to invest in up-and-coming new companies not only to earn money, but also to provide a resource that would have been helpful to them in the early stages of their own businesses.
Test: Resource Mobilization- 2 - Question 13

State Whether the Following Statements are True or False.
Q. Venture capital is a subset of public equity.

Detailed Solution for Test: Resource Mobilization- 2 - Question 13

Technically, venture capital (VC) is a form of private equity. The main difference is that while private equity investors prefer stable companies, VC investors usually come in during the startup phase. Venture capital is usually given to small companies with incredible growth potential.

Test: Resource Mobilization- 2 - Question 14

State Whether the Following Statements are True or False.
Q. Angel investors expect a low return on investment.

Detailed Solution for Test: Resource Mobilization- 2 - Question 14

Basically, the Angel investors are investing larger sizes, later stages and higher valuations. That all indicates that there is less risk in these investments, because the Angel groups are moving downstream a little bit. There's less risk, accordingly, you could expect lower returns.

Test: Resource Mobilization- 2 - Question 15

State Whether the Following Statements are True or False.
Q. Venture capital has been used as a tool for economic development in a variety of developing regions.

Detailed Solution for Test: Resource Mobilization- 2 - Question 15
  • Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
  • Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.
19 videos|60 docs|12 tests
Information about Test: Resource Mobilization- 2 Page
In this test you can find the Exam questions for Test: Resource Mobilization- 2 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Resource Mobilization- 2, EduRev gives you an ample number of Online tests for practice

Top Courses for Commerce

19 videos|60 docs|12 tests
Download as PDF

Top Courses for Commerce