Financial management Archives - Page 3 of 112 - MCQ and Quiz for Exams

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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