Financial Management Set 2
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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 2
Q1 | _____________ refers to the price at which an asset can be traded in the market
- past value
- face value
- market value
- future value
Q2 | __________ is a blending of two or more exisiting undertaking into one undertaking
- partnership
- joint stock company
- joint venture
- amalgamation
Q3 | _____________ Means the action of an organisation or government selling or liquidating an asset or subsidiary
- sale out
- disinvestment
- lock out
- wind up
Q4 | _________The lessee and the owner of the equipment are two different entities
- direct lease
- financial lease
- operating lease
- net lease
Q5 | ___________ is the primary institutional source of working capital finance in India
- debtors
- loan from friend
- bank credit
- creditors
Q6 | __________ means reputation of a firm which is in existance for a number of year in market
- goodwill
- bad debts
- copy rights
- royalties
Q7 | ___________ involves mergers and acquisition of firm belonging to differernt countries of the world.
- credit merger
- group merger
- cross bordor merger
- synergy merger
Q8 | _______________Is a entity formed by two or more companies to undertake financial activity together.
- parntership firm
- acquisition
- joint venture
- merger
Q9 | In a __________ transaction the goods are let on hire the purchase price is to be paid in installment and hirer is allowed an option to purchase the goods by paying all the installment
- hire purchase
- credit purchase
- lease purchase
- installment purchase
Q10 | The arrengement in which entire amount of borrowing is credited to the current account of the borrower or realised in cash is called as_________
- letter of credit
- bank overdraft
- loan
- bill discounting
Q11 | Book value ( Net assets )= Total Assets - _______________
- total liability
- current asset
- long term debt
- current liability
Q12 | ____________ synergy refers to increase in the value of the firm that occurs to the combined firm from financial factors.
- group
- vertical
- financial
- operating
Q13 | The kind of takeover which is done through negotiations between two groups is called_________
- horizontal merger
- hostile take over
- friendly take over
- vertical synergy
Q14 | From the point of view lessee, a lease is a_________
- financing decision
- buy or make decision
- working capital decision
- investment decision
Q15 | ____________ indirect form of working capital financing and bank assume only the risk the credit being provided by the supplier himself
- mortgage loan
- letter of credit
- bank overdraft
- cash credit
Q16 | EVA= ___________ - (Equity capital x % of cost of equity capital
- earning after tax
- net operating profit after tax
- npat
- npbt
Q17 | ___________ is the ratio of the number of shares of the aquiring firm and the selling firm's share
- dividennd pay out ratio
- debt- equity ratio
- exchange ratio
- current ratio
Q18 | Which of the follwing is not a usual method of calculation of share swap ratio?
- sales turnover
- economic value added
- dividend after tax
- tax benefit
Q19 | Sale and lease back and ____________ are types of finance lease
- operating lease
- finance lease
- leverage lease
- net lease
Q20 | ________ are taken as an additional security for working capital credit by banks
- hypothecations
- pledge
- mortgage
- cash credit
Q21 | ___________ value is used when an investor wants true or real value on basis of analysis of fundamentals without considering the prevailing price in the market
- intrinsic
- social
- current
- average
Q22 | EPS = ___________ / Total number of shares
- profit after tax
- net profit after interest and tax
- npbt
- ebt
Q23 | _________ classifies merger as vertical and horizontal
- as14
- as20
- as 9
- as 12
Q24 | Treatment of _______ in AS 19 is almost same as required by tax laws in India
- operating lease
- net lease
- financial lease
- hire purchase
Q25 | _____________ has suggested three methods of working out of the maximum amount that unit may expect from the bank (MPBF)
- tondon committee
- chore committee
- walters committee
- gordon\s committee