Financial management

21. Relationship between change in sales and change in EPS is measured by:

Financial leverage
Combined leverage
Operating leverage
None of the above

Detailed SolutionRelationship between change in sales and change in EPS is measured by:

22. An inexpensive and easy business formation and few government regulations are advantages of

Private Corporation
personal ownership
proprietorship
personal business

Detailed SolutionAn inexpensive and easy business formation and few government regulations are advantages of

23. Factoring is a form of financing.

payable
receivables
borrowings
debts

Detailed SolutionFactoring is a form of financing.

24. In Current Ratio, Current Assets are compared with:

Current Profit
Current Liabilities
Fixed Assets
Equity Share Capital

Detailed SolutionIn Current Ratio, Current Assets are compared with:

25. Dividends are paid out of:

Accumulated Profit
Gross Profit
Profit after Tax
General Reserve

Detailed SolutionDividends are paid out of:

26. A proposal is not a Capital Budgeting proposal if it:

is related to fixed assets
brings long-term benefits
brings short-term benefits only
has very large investment

Detailed SolutionA proposal is not a Capital Budgeting proposal if it:

27. Interest rates, tax rates and market risk premium are factors which an/a

industry cannot control
industry cannot control
firm must control
firm cannot control

Detailed SolutionInterest rates, tax rates and market risk premium are factors which an/a

28. Dividend yield is 25% and current price is Rs 40 then dividend yield will be

Rs 50.00
Rs 10.00
Rs 65.00
Rs 15.00

Detailed SolutionDividend yield is 25% and current price is Rs 40 then dividend yield will be

29. Risk of fall in income due to fall in interest rates in future is classified as

income risk
investment risk
reinvestment risk
mature risk

Detailed SolutionRisk of fall in income due to fall in interest rates in future is classified as

30. Companies take savings as premium, invest in bonds and make payments to beneficiaries are classified as

debit unions
life insurance companies
credit unions
auto purchases

Detailed SolutionCompanies take savings as premium, invest in bonds and make payments to beneficiaries are classified as

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