[amp_mcq option1=”Collections > Current Purchases” option2=”Collections > Current Sales” option3=”Collections < Current Purchases" option4="Collections < Current Sales" correct="option3"]
Financial management
2. According to capital asset pricing model assumptions, quantities of all assets are
[amp_mcq option1=”given and fixed” option2=”not given and fixed” option3=”not given and variable” option4=”given and variable” correct=”option1″]
Detailed SolutionAccording to capital asset pricing model assumptions, quantities of all assets are
3. Cash Inflows from a project include:
[amp_mcq option1=”Tax Shield of Depreciation” option2=”After-tax Operating Profits” option3=”Raising of Funds” option4=”Both A and B” correct=”option2″]
4. Financial risk is most associated with_______________.
[amp_mcq option1=”the use of equity financing by corporations” option2=”the use of debt financing by corporations” option3=”Equity investments held by corporations” option4=”Debt investments held by corporations.” correct=”option1″]
Detailed SolutionFinancial risk is most associated with_______________.
5. Which of the following is a liability of a bank?
[amp_mcq option1=”Treasury Bills” option2=”Commercial Papers” option3=”Certificate of Deposits” option4=”Junk Bonds” correct=”option3″]
Detailed SolutionWhich of the following is a liability of a bank?
6. Future value interest factor takes ____________.
[amp_mcq option1=”Compounding rate” option2=”Discounting rate” option3=”Inflation rate” option4=”Deflation rate” correct=”option1″]
Detailed SolutionFuture value interest factor takes ____________.
7. Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
[amp_mcq option1=”common stock” option2=”preferred stock” option3=”bonds equity” option4=”common shares” correct=”option2″]
8. Cost of not carrying sufficient inventory is known as:
[amp_mcq option1=”Carrying Cost” option2=”Holding Cost” option3=”Total Cost” option4=”Stock-out Cost” correct=”option4″]
Detailed SolutionCost of not carrying sufficient inventory is known as:
9. Most investors are risk averse which means____________.
[amp_mcq option1=”they will assume more risk only if they are compensated by higher expected return” option2=”they will always invest in the investment with the lowest possible risk” option3=”they will always invest in the investment with the lowest possible risk” option4=”they avoid the stock market due to the high degree of risk” correct=”option1″]
Detailed SolutionMost investors are risk averse which means____________.
10. ‘Judicious use of leverage’ is suggested by:
[amp_mcq option1=”Net Income Approach” option2=”Net Operating Income Approach” option3=”Traditional Approach” option4=”All of the above” correct=”option4″]
Detailed Solution‘Judicious use of leverage’ is suggested by: