[amp_mcq option1=”efficient portfolio” option2=”inefficient portfolio” option3=”attributable portfolio” option4=”non-attributable portfolio” correct=”option1″]
Financial management
12. All partners have limited liability in
[amp_mcq option1=”unlimited liability partnership” option2=”limited liability partnership” option3=”controlled partnership” option4=”uncontrolled partnership” correct=”option2″]
13. Sum of discounted cash flows is best defined as
[amp_mcq option1=”technical equity” option2=”defined future value” option3=”project net present value” option4=”equity net present value” correct=”option3″]
Detailed SolutionSum of discounted cash flows is best defined as
14. In capital budgeting, an internal rate of return of project is classified as its
[amp_mcq option1=”external rate of return” option2=”internal rate of return” option3=”positive rate of return” option4=”negative rate of return” correct=”option2″]
Detailed SolutionIn capital budgeting, an internal rate of return of project is classified as its
15. Greater the size of a business unit ________ will be the requirements of working capital.
[amp_mcq option1=”larger” option2=”lower” option3=”no change” option4=”fixed” correct=”option1″]
16. In stock dividend:
[amp_mcq option1=”Authorized capital always increases” option2=”Paid up capital always increases” option3=”Face value per share decreases” option4=”Market price for share decreases” correct=”option3″]
17. An inflation rate including in quoted interest rate on security, is inflation rate
[amp_mcq option1=”expected over security life” option2=”expected at deferred call” option3=”at bond issuance” option4=”expected at time of maturity” correct=”option1″]
Detailed SolutionAn inflation rate including in quoted interest rate on security, is inflation rate
18. An unmanaged fixed income security portfolio handled by an independent trustee is known as a______________.
[amp_mcq option1=”junk bond fund” option2=”closed-end investment company” option3=”unit investment trust” option4=”hedge fund” correct=”option3″]
19. Government spending, if it exceeds federal government tax revenues then it is classified as
[amp_mcq option1=”Federal Reserve” option2=”federal budget” option3=”budget surplus” option4=”budget deficit” correct=”option4″]
20. The price to book value ratio tends to be close for_____________.
[amp_mcq option1=”high-tech companies” option2=”banks” option3=”utilities” option4=”service companies” correct=”option2″]
Detailed SolutionThe price to book value ratio tends to be close for_____________.