Working Capital Management Set 6
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This set of Working Capital Management Multiple Choice Questions & Answers (MCQs) focuses on Working Capital Management Set 6
Q1 | Which of the following is not a spontaneous source of short-term funds ?
- trade credit,
- accrued expenses,
- provision for dividend,
- all of the above.
Q2 | Concept of Maximum Permissible Bank finance was introduced by
- kannan committee
- chore committee,
- nayak committee,
- tandon committee.
Q3 | In India, Commercial Papers are issued as per the guidelines issued by
- securities and exchange board of india,
- reserve bank of india,
- forward market commission,
- none of the above.
Q4 | Commercial paper are generally issued at a price
- equal to face value,
- more than face value,
- less than face value,
- equal to redemption value
Q5 | Which of the following is not applicable to commercial paper
- face value
- issue price
- coupon rate
- none of the above.
Q6 | The basic objective of Tandon Committee recommendations is that thedependence of industry on bank should gradually
- increase,
- remain stable
- decrease
- none of the above
Q7 | Cash discount terms offered by trade creditors never be accepted because
- benefit in very small
- cost is very high
- no sense to pay earlier
- none of the above.
Q8 | In lease system, interest is calculated on
- cash down payment
- cash price outstanding
- hire purchase price
- none of the above
Q9 | A short-term lease which is often cancellable is known as
- finance lease
- net lease,
- operating lease,
- leverage lease
Q10 | Which of the following is not a usual type of lease arrangement?
- sale & leaseback,
- goods on approval,
- leverage lease,
- direct lease
Q11 | Under income-tax provisions, depreciation on lease asset is allowed to
- lessor
- lessee
- any of the two,
- none of the two
Q12 | A lease which is generally not cancellable and covers full economic life of theasset is known as
- sale and leaseback,
- operating lease
- finance lease,
- economic lease
Q13 | Lease which includes a third party (a lender) is known as
- sale and leaseback
- direct lease,
- inverse lease,
- leveraged lease
Q14 | One difference between Operating and Financial lease is:
- there is often an option to buy in operating lease
- there is often a call option in financial lease.
- an operating lease is generally cancelable by lease
- a financial lease in generally cancelable by lease.
Q15 | From the point of view of the lessee, a lease is a:
- working capital decision,
- financing decision,
- buy or make decision,
- investment decision
Q16 | For a lesser, a lease is a
- investment decision,
- financing decision,
- dividend decision
- none of the above.
Q17 | Which of the following is not true for a "Lease decision for the lessee?
- helps in project selection
- helps in project financing
- helps in project location
- all of the above.
Q18 | Risk-Return trade off implies
- minimization of risk,
- maximization of risk,
- ignorance of risk
- optimization of risk
Q19 | Basic objective of diversification is
- increasing return,
- maximising return,
- decreasing risk,
- maximizing risk.