Financial Management Set 23
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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 23
Q1 | Which ratio explains that how much portion of earning is distributed in the form of dividend
- Dividend per Share Ratio
- Pay Out Ratio
- Earning yield Ratio
- Equity Capital Ratio
Q2 | Preference shares are those shares whose holders have -------------
- Certain common rights
- Certain preferential Rights
- Return on capital ownership on shares
- Return on capital
Q3 | When preference shareholders have a right to convert their preference shares in to equity shares after a pre-decided dare such shares are called -------- shares.
- Participating
- Convertible
- Redeemable
- Irredeemable
Q4 | Which is the element of cumulative convertible preference shares?
- The rate of dividend will be 10%
- The rate of dividend is 20%
- No risk
- No return
Q5 | ----------- have veto power to protect their preferential rights
- Preference shareholder
- Debenture holders
- Common preference share
- Right shares
Q6 | The company can reduce its capital by -------------
- Convertible share
- Payment of loan
- Redemption of redeemable preference shares
- Payment of interest
Q7 | Which is the type of dividend?
- Cash dividend
- Interest
- Profit cum reserve
- Flexible capital
Q8 | The dividend on equity shares is only paid when dividend on ---------- has already been paid
- Equity shares
- Preference shares
- Bond
- Debenture
Q9 | Which shares are not redeemed during lifetime of the company?
- Equity shares
- Preference shares
- Redeemable pre-shares
- All of these
Q10 | “ A debenture is a document which either creates a debt or acknowledge it” . who said?
- Justice Chitty
- Tophan’s Company law
- J. Betty
- Hoston D
Q11 | Which is the current liability?
- Bills payable
- Bank overdraft
- Creditors and proposed dividend
- All of these
Q12 | Reserve is an ---------------
- Additional part of profit
- Additional loss
- Liability
- Cost
Q13 | If there is over capitalization in the company, the redemption of debenture can lead to---------------
- Cost of capital
- Balanced capital structure
- Equity
- Dividend
Q14 | The interest on debenture may be ---------------
- Fixed liability
- Flexible liability
- More cost
- Less cost
Q15 | The issue of debenture is done only by the --------------
- New company
- New firm
- New partnership
- Established and reputed companies
Q16 | The debentures are used only by those companies whose ------------
- Goodwill is more
- Goodwill is less
- Worth is less
- All of these
Q17 | The debentures are issued on the security of ----------------
- Fixed assets
- Fixed capital
- Current Assets
- Current liabilities
Q18 | Every debenture holders is a ----------------
- Owner of the company
- Creditor of the company
- Supplier of the company
- Customer of the company
Q19 | A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
- Maximum
- Minimum
- Expensive
- All of the above
Q20 | Term loans are those loans which are payable after one or more ______________
- years
- Time
- Costly
- All of these
Q21 | The redemption means
- The payment of amount
- The depreciation of the amount
- The allocation of cost
- All of these
Q22 | Refunding means
- Issue of new debenture
- Issue of capital
- Disposable cost
- Issue new debentures in place of old debentures
Q23 | Conversion means
- Debentures are converted in to equity shares
- Registration of cost
- Accounting the transaction
- Debenture holders are allotted equity shares
Q24 | Stock is --------------------
- Current asset
- Fixed asset
- Fixed capital
- All of these
Q25 | Earnings means -----------------------
- Profit
- Loss
- Capital
- Reserve