MCQs on Financing Options & Modes for SMEs
25 MCQs on Financing Options & Modes for SMEs
Prepare for exams or enhance your knowledge with these 25 multiple-choice questions covering various aspects of SME financing, including important committee recommendations and financial products!
MCQs
- Which of the following is a debt financing option?
A) Angel Investment B) Bank Loan C) Venture Capital D) Private Equity - Quasi capital includes:
A) Grants B) Preference Shares C) Bank Loan D) Venture Loan - Factoring mainly improves a firm's:
A) Marketing Strategy B) Cash Flow C) Production Efficiency D) HR Efficiency - Venture Capital typically funds:
A) Startups B) Government Firms C) NGOs D) Insurance Companies - The Mudra Bank finances primarily:
A) Large Corporates B) Micro Enterprises C) Government Projects D) Educational Trusts - Who recommended Maximum Permissible Bank Finance (MPBF) concept?
A) Daheja Committee B) Tandon Committee C) Chore Committee D) Nayak Committee - Liquidity assessment involves examining:
A) Organizational Chart B) Cash Flow Statements C) Employee Skills D) Office Location - Which of the following is NOT a method of financing SMEs?
A) Leasing B) Factoring C) Equity Issue D) Retail Selling - Which committee focused on cash credit system?
A) Chore Committee B) Nayak Committee C) Kapoor Committee D) Daheja Committee - Hybrid capital is best described as a mix of:
A) Debt and Equity B) Assets and Liabilities C) Revenue and Expenses D) Debtors and Creditors - Collateral is used to:
A) Increase profit B) Secure a loan C) Decrease expenses D) Advertise products - Micro-Enterprise finance is primarily targeted at:
A) Mid-size Corporates B) Large Industries C) Tiny Businesses D) Foreign Companies - Credit risk management does NOT involve:
A) Appraisal B) Documentation C) Advertising D) Follow-up - Credit scoring models predict:
A) Future revenue B) Likelihood of default C) Market Share D) Employee Turnover - Which financial institution specifically supports SMEs in India?
A) NABARD B) SIDBI C) SEBI D) RBI - The Standing Committee on MSMEs was initiated by:
A) RBI B) SIDBI C) Ministry of MSME D) Finance Ministry - Priority Sector Lending (PSL) guidelines mandate banks to lend to:
A) Real Estate Sector B) Agriculture and MSME C) FMCG Industry D) Automobile Industry - Which report focuses on data and credit information sharing for MSMEs?
A) CIBIL Report B) Budget Report C) Marketing Report D) HR Audit - CERSAI maintains a registry of:
A) Marketing Companies B) Asset-backed loans C) Exporters D) Education Institutions - In credit appraisal, 'DSCR' stands for:
A) Debt Service Credit Ratio B) Debt Service Coverage Ratio C) Development Subsidy Coverage Ratio D) Deposit Security Coverage Ratio - The Daheja Committee Report focused on:
A) Export Reforms B) Simplified Lending to Small Units C) Infrastructure Funding D) Stock Market Regulation - The Nayak Committee suggested that SMEs should get what percent of their turnover as working capital?
A) 10% B) 15% C) 20% D) 25% - Kapoor Committee is associated with:
A) Asset Reconstruction B) SME Credit Availability C) Insurance Regulations D) Income Tax Administration - Working Capital cycle can be calculated using:
A) Revenue - Expenses B) Current Assets - Current Liabilities C) Cash + Profits D) Equity - Debt - MIRA reports are useful in assessing:
A) Business Expansion Potential B) External Risk Profile C) Environmental Clearance D) Bank Mergers
Answer Key
1) B
2) B
3) B
4) A
5) B
6) B
7) B
8) D
9) A
10) A
11) B
12) C
13) C
14) B
15) C
16) B
17) A
18) B
19) B
20) B
21) B
22) B
23) B
24) B
25) B
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