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Commerce · all questions

Business Finance
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As per Section 62(1) of Companies Act, 2013, the mechanism by which companies can raise additional capital from existing shareholders is

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A debenture mostly

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Factors that are considered to solve the financial problems of business organisations are
1. cost of capital supply
2. importance and objectives of capital
3. different types of benefits
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Which of the following is/are not a current asset?

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The rate of discount at which NPV of a project becomes zero is also known as

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Assertion (A): The important aspect of dividend policy is to determine the amount of earnings to be distributed to shareholders, and the amount to be retained in the firm.
Reason (R): Dividend policy of the firm has its effect on both the long-term financing and the wealth of shareholders.

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Which of the following examples best represents a passive dividend policy?

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Match the following.
List-I (Concepts) List-II (Meanings)
a. Regular dividend policy 1. Part of divisible profits of a company, which is distributed among its shareholders
b. Dividend 2. Application of planning and control functions to the finance function
c. Capitalisation 3. Payment of dividend at usual rate
d. Financial management 4. Refers to the process of determining the quantum of funds required for a firm

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Arrange the following steps involved in capital budgeting in order of their occurrence
i. Project selection
ii. Project appraisal
iii. Project generation
iv. Follow up
v. Project execution

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Which of the following can be taken as the core principles of finance?
(i) There is time value of money.
(ii) There are risks and returns involved in financial decisions.
(iii) Lower risk asks for higher returns.
(iv) Risk is not volatile.
(v) The market has increasingly become a more determining factor of finance decisions.

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The total return on a security is equal to the following

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An example of Euro currency is

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Long-term sources of finance are also required for

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A leased asset should be depreciated over the

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Match the following.
List-I List-II
a. Payback method 1. Give due weightage to the profitability of project
b. Unadjusted rate of return method 2. Predetermination of earnings is not necessary
c. NPV method 3. It avoids in calculable risk and uncertainty
d. IRR method 4. Its calculation is much simpler

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Advantages of adequate working capital funds include

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Some equity schemes take opposite positions in different market segments, such that a return is earned while remaining risk neutral. They are called

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Select the correct answer regarding the motives for holding inventories by firms.
1. Transaction motive
2. Environmental motive
3. Precautionary motive
4. Speculative motive
5. Competitive motive

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Which of the following is not an approach to the capital structure?

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"Capital budgeting is concerned with designing and carrying through a systematic investment programme." Who said it?

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