Financial Management Set 25
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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 25
Q1 | Book building --------------------
- Is a plant
- Is a profit cum expenses
- Is a process used for marketing a public offer of equity shares of a company
- Is a cost
Q2 | When an option is allowed to be exercised only on maturity date is called --------------
- Indian option
- European option
- American option
- Option
Q3 | Commercial paper effective from ---------------------
- 1-1-1980
- 1-1-1990
- 1-1-1975
- 1-1-1995
Q4 | In India commercial paper is regulated by -------------------
- RBI
- SEBI
- SBI
- Indian companies act 1956
Q5 | The interest rate on commercial paper is determined by -------------
- RBI
- SEBI and Market Force
- SBI
- Market Force
Q6 | Factoring is a ----------------
- Cost of sales
- Production plan
- Financial planning
- New financial service
Q7 | Factoring involves ----------------
- Provision of specialized services relating to credit investigation
- Sales ledger management
- Purchase and collection of debts
- All of these
Q8 | Which of the following recognizes risk in capital budgeting analysis by adjusting estimated cash flows and employs risk free rate to discount the adjusted cash flows?
- Pay back period
- Certainty equivalent approach
- Cash
- Inventory
Q9 | ------------- rate at which discounts the cash flows to zero
- Payback period by economic order quantity
- Internal rate of return
- Cash flow
- None of these
Q10 | The net present value is expressed in financial value, where as internal rate of return(IRR) is expressed in ---------------
- Hundred by percentage terms
- One thousand
- All of these
- None of these
Q11 | Return on assets is a ratio which measures ----------------
- Cost of capital
- Cost of production
- Profitability
- Cost of sales
Q12 | Return on equity measures the profitability of ------------------- invested in the firm
- Capital
- Equity funds
- Book debt
- Debentures and book dept
Q13 | Which ratio reveals how profitability of the owner’s funds have been utilized by the firm?
- Return on equity
- Current ratio
- Fixed asset ratio
- Debt equity ratio
Q14 | Capital employed is ----------
- Assets + cash
- Shareholders funds + Long funds
- Cash + bank
- Bank
Q15 | Financial leverage is ----------------
- EBIT/100* sales
- EBIT/EBT
- Sales/fixed asset
- Profit/sales*capital
Q16 | Shareholder value analysis is an approach to Financial Management Development in ------------------
- 1970
- 1980
- 1990
- 1996
Q17 | The term financial engineering is used to ----------------
- Cost of production
- Risk management
- Capital
- Sales planning
Q18 | The packing order theory is based on -----------
- Stable dividend policy
- A performance for internal
- All of these
- None of these
Q19 | SGR is stands for --------------
- Sustainable Growth rate
- Sales Growth rate
- Sales Goodwill rate
- Super Goodwill ratio
Q20 | A company may raise funds by issue of shares or -------------
- By borrowings
- By sales of goods
- By sale of assets
- By sale of services
Q21 | Borrowings carry -----------
- Fixed rate of interest
- A flexible rate of interest
- A fixed dividend
- A flexible dividend
Q22 | Which helps in deciding whether funds should be raised by internal equity or by borrowings>
- Capital structure
- Loan
- Cash
- Trading on equity
Q23 | Which are the determinants of capital structure?
- Requirement of investors
- Control
- Tax
- Govt. policy
Q24 | Which is the instrument of finance
- Zero coupon bonds
- Debt securitization
- Credit card
- All of these
Q25 | Which is the part of restrictive covenants
- Asset related covenants
- Liability related covenants
- Cash flow related covenants
- All of these