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Commerce · all questions

Business Finance
practice.

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Three forms of trade credit include

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What are the main benefits given to participating preference shareholders?

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. . . . . . . . varies inversely with profitability.

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Assertion (A): When two or more investment proposals are mutually exclusive, ranking the proposals on the basis of IRR, NPV, and PI methods may give contradictory results.
Reason (R): The contradictory results in the ranking are due to differing dimensions relating to the scale of investments, cash flow patterns, and project lives.
Indicate the correct answer.

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Operating cycle can be shortened by increasing

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Match the following.
List-I List-II
a. Capital budgeting 1. Time adjusted rate of return
b. Profitability index 2. Irreversible
c. Internal rate of return 3. Benefit/cost
d. Capital investment decisions 4. Planning capital expenditure

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Which of the following is not the major objectives of the International Monetary Fund?

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Which of the following assumptions is not covered in Walter's Model of the dividend policy?

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To say that the forward market lacks liquidity means that

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The immediate (two days) exchange of one currency for another is a

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Which of the following methods does not consider the profitability of the whole life of the project?

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Which of the following is not an indication a lease is a finance lease?

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Dividends are earnings for shareholders and they expect reasonable earnings from their

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Which of the following combination is suitably attributed to the statement that stakeholders should expect a fair return on their investment?
(i) Optimization of Profit
(ii) Social Responsibility of Business
(iii) Competition Theory of Business
(iv) Walter's Theory

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Which of the following statements is not correct?

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Match the following.
List-I List-II
a. Net income approach 1. Also known as 'Intermediate Approach'
b. Net operating income approach 2. Change in the capital structure of a company does not affect the market value of the company and overall cost of capital
c. Traditional approach 3. It provide analytical sound and logically consistent behavioural justification for their hypothesis
d. Modigliani Miller approach 4. A firm can minimise the overall cost of capital by using debt financing to the maximum extent

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Dividend policy of a company mainly concerns with
1. Dividend payout and/or
2. Stability of dividend
Select the correct answer using the options given below

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The risks that cannot be eliminated by diversification are

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If NPV is positive, the IRR will be

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Efficient portfolios can be defined as those portfolios which for a given level of risk provides

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