Financial management

41. Offering cash discount to customers result in _______.

reducing the average collection period
increasing the average collection period
increasing sales
decreasing sales

Detailed SolutionOffering cash discount to customers result in _______.

42. Which of the following appearing in the balance, generates tax advantage and hence affects the c, structure decision?

Reserves and Surplus
Long-term Debt
Preference Share Capital
Equity Share Capital

Detailed SolutionWhich of the following appearing in the balance, generates tax advantage and hence affects the c, structure decision?

43. Stockholders that do not get benefits even if company’s earnings grow are classified as

preferred stockholders
common stockholders
hybrid stockholders
debt holders

Detailed SolutionStockholders that do not get benefits even if company’s earnings grow are classified as

44. Stock market theory which states that stocks are in equilibrium and impossible for investors to beat market is classified as an

inefficient market hypothesis
efficient market hypothesis
efficient stock hypothesis
inefficient stock hypothesis

Detailed SolutionStock market theory which states that stocks are in equilibrium and impossible for investors to beat market is classified as an

45. If the fixed cost of production is zero, which one of the following is correct?

OL is zero
FL is zero
CL is zero
None of the above

Detailed SolutionIf the fixed cost of production is zero, which one of the following is correct?

46. Project whose cash flows are less than capital invested for required rate of return then net present value will be

negative
zero
positive
independent

Detailed SolutionProject whose cash flows are less than capital invested for required rate of return then net present value will be

47. Return on Investment may be improved by:

Increasing Turnover
Reducing Expenses
Increasing Capital Utilization
All of the above

Detailed SolutionReturn on Investment may be improved by:

48. ABC Analysis is useful for analyzing the inventories:

Based on their quality
Based on their usage and value
Based on physical volume
All of the above

Detailed SolutionABC Analysis is useful for analyzing the inventories:

49. The amount of current assets that varies with seasonal requirements is referred to as __________ working capital.

Permanent
Net
Temporary
Gross

Detailed SolutionThe amount of current assets that varies with seasonal requirements is referred to as __________ working capital.

50. Which of the following is a function of the finance manager?

Mobilizing funds
Risk returns trade off
Deployment of funds
Control over the uses of funds E. All of above

Detailed SolutionWhich of the following is a function of the finance manager?

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