Detailed SolutionRelationship between change in sales and change in EPS is measured by:
Financial management
Financial leverage
Combined leverage
Operating leverage
None of the above
Answer is Right!
Answer is Wrong!
22. An inexpensive and easy business formation and few government regulations are advantages of
Private Corporation
personal ownership
proprietorship
personal business
Answer is Right!
Answer is Wrong!
23. Factoring is a form of financing.
payable
receivables
borrowings
debts
Answer is Right!
Answer is Wrong!
24. In Current Ratio, Current Assets are compared with:
Current Profit
Current Liabilities
Fixed Assets
Equity Share Capital
Answer is Right!
Answer is Wrong!
Detailed SolutionIn Current Ratio, Current Assets are compared with:
25. Dividends are paid out of:
Accumulated Profit
Gross Profit
Profit after Tax
General Reserve
Answer is Right!
Answer is Wrong!
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
Answer is Right!
Answer is Wrong!
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
Answer is Right!
Answer is Wrong!
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
Answer is Right!
Answer is Wrong!
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
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Answer is Wrong!
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
Answer is Right!
Answer is Wrong!