Financial management Archives - Page 4 of 112 - MCQ and Quiz for Exams

31. One reason for the declining importance of pension funds is the_______________.

decrease in pension benefits for workers

downsizing of US companies

large number of conversions into self-directed plans

increasing number of federal regulations that restrict pension fund portfolios

Detailed SolutionOne reason for the declining importance of pension funds is the_______________.

32. Which combination is generally good for firms?

High OL, High FL

Low OL, Low FL

High OL, Low FL

None of these

Detailed SolutionWhich combination is generally good for firms?

33. Net worth is also called

asset net of liabilities

liabilities net of assets

earnings net on assets

liabilities net of earnings

Detailed SolutionNet worth is also called

34. Market value of option which is out-of-money is

greater than zero

equal to zero

lesser than zero

equal to one

Detailed SolutionMarket value of option which is out-of-money is

35. Inventory holding cost may include:

Material purchase cost

Penalty charge for default

Interest on loan

None of the above

Detailed SolutionInventory holding cost may include:

36. Financial decision involves:

Investment, financing and dividend decision

Investment, financing and sales decision

Financing, dividend and cash decision

None of these

Detailed SolutionFinancial decision involves:

37. What are the factors which make debentures attractive to investors?

They enjoy a high order of priority in the event of liquidation

Stable rate of return

No risk

All of the above

Detailed SolutionWhat are the factors which make debentures attractive to investors?

38. There is deterioration in the management of working capital of XYZ Ltd. What does it refer to?

That the Capital Employed has reduced

That the Profitability has gone up

That Debtors Collection period has increased

That Sales has decreased

Detailed SolutionThere is deterioration in the management of working capital of XYZ Ltd. What does it refer to?

39. Net operating profit after taxes is Rs 4500, net investment in operating capital is Rs 8500 and then free cash flow would be

-Rs 4,000.00

Rs 4,000.00

-Rs 18,000.00

Rs 18,000.00

Detailed SolutionNet operating profit after taxes is Rs 4500, net investment in operating capital is Rs 8500 and then free cash flow would be

40. In cash flow estimation, depreciation is considered as

cash charge

noncash charge

cash flow discounts

net salvage discount

Detailed SolutionIn cash flow estimation, depreciation is considered as

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