Vidyalelo
Commerce · all questions

Business Finance
practice.

Practice every MCQ with options. Use Show answers when you want the correct option and solution.

703

Questions

4/36

Page

Pick an option on a question to see the right answer and solution.

Which of the following risk is termed as foreign exchange risk?

Select an option to see the answer and solution.

Assertion (A): A company should pay dividend to its shareholders.
Reason (R): Dividends are heavilly taxed than capital gains.

Select an option to see the answer and solution.

Permanent working capital is generally financed through

Select an option to see the answer and solution.

We adopt the philosophy analogous to hedging (maturity matching). Which of the following is the most appropriate form for financing a new capital investment in plant and equipment?

Select an option to see the answer and solution.

Which among the following is the correct full form of SIDO set up in 1973?

Select an option to see the answer and solution.

Debentures are long-term Borrowings of a Company. In debenture, interest payable is

Select an option to see the answer and solution.

Which of the following sections of the Companies Act, 2013, defines shares?

Select an option to see the answer and solution.

Which one of the following statement is false?

Select an option to see the answer and solution.

Which one the following assumptions is not covered in the Walter's model of the Dividend Policy?

Select an option to see the answer and solution.

Dividend capitalisation model was developed by

Select an option to see the answer and solution.

Short-term cash flow improvement may not be achieved by

Select an option to see the answer and solution.

The term 'capital structure' implies

Select an option to see the answer and solution.

Which one refers to cash inflow under payback period method?

Select an option to see the answer and solution.

Which one of the following combination of rules stands true while preparing schedule of changes in working capital?
1. An increase in current assets increases working capital.
2. An increase in current assets decreases working capital.
3. An increase in current liabilities decreases working capital.
4. An increase in current liabilities increases working capital.

Select an option to see the answer and solution.

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 sacle of investments, cash flow patterns and project lives.

Select an option to see the answer and solution.

Which one of the following is not a method of calculating cost of equity capital?

Select an option to see the answer and solution.

Risk of a portfolio can be minimised by which one of the following?

Select an option to see the answer and solution.

The concept of present value is based on the

Select an option to see the answer and solution.

Interest paid (or earned) on only the original principal borrowed (or lent) is often referred to as

Select an option to see the answer and solution.

Read the following statements:
1. The rate of return on investment increases with the shortage of working capital.
2. Net working capital is the excess of current assets over current liabilities.
3. Greater the size of the business unit, larger will be the requirement of working capital.
4. Working capital is also known as circulating capital.
Which one of the following consists of the correct statements?

Select an option to see the answer and solution.