Strategic Financial Management Set 2
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This set of Strategic Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Strategic Financial Management Set 2
Q1 | SEBI Act was passed in the year------
- 1956
- 1988
- 1992
- 1947
Q2 | Goodwill is an example of ---- asset
- tangible.
- intangible.
- fictitious
- current
Q3 | Traditionally UTI was a-----
- bank
- mutual fund.
- financial institution
- insurance company
Q4 | Members of recognised stock exchanges are termed as
- brokers
- underwriters
- shareholder s
- lead managers.
Q5 | A shareholder invests in a Company's Shares mainly------
- for capital appreciation
- to receive dividends.
- to receive bonus and rights shares
- to receive interest on investment regularly.
Q6 | Which of the following is not applicable to IRR?
- considers all cash flows
- based on time value of money
- common for all projects
- stated in % return
Q7 | PQR Ltd. Is a profit-making company. It is absorbed into another group company XYZ Ltd. Which is a loss Company. This case is off
- hostile takeover bid
- horizontal merger
- reverse merger
- takeover
Q8 | ABC Ltd. acquires hundred percent of preference share capital of PQR Ltd. It would result in
- hostile takeover bid
- vertical merger
- no relationship
- holding subsidiary relationshi p
Q9 | TCs Ltd. acquires HCL Ltd., MPS of HCL Ltd. Is Rs.20 and EPS is Rs. 5 for an exchange ratio of 1.5: 1, what was the PE ratio used in acquiring HCL Ltd.?
- rs. 4
- rs. 5
- rs. 6
- rs. 2.67
Q10 | Commercial papers is a type of
- fixed coupon bond
- unsecured short term debt
- equity share capital
- governmen t bond
Q11 | Which of the followings is an item of Current Liability?
- bank balance
- bank overdraft
- cash balance
- unsecured loans
Q12 | In the Balance-sheet----- stock is indicated
- opening
- closing
- average
- finished goods
Q13 | Rights issue is also called as -----
- privileged subscription.
- equity shares
- stock dividend.
- bonus shares
Q14 | …… increases the number of shares without actually increasing the paid - up value of the share capital.
- consolidation of shares.
- stock split- ups
- bonus issue
- rights issue
Q15 | A merchant banker-------
- is a bank of merchants and businessmen.
- provides loan to merchants.
- accepts deposits from merchants.
- renders corporate advisory services.
Q16 | Decision involving purchase of fixed assets are also termed as:
- capital structure decisions.
- capital budgeting
- capital restructurin g
- capital mix decisions
Q17 | A Balance Sheet tallies; because:
- it is based on double entry system of accounting
- it is based on single entry system of accounting.
- all accounts are computerise d.
- total of assets equals to the total of liabilities
Q18 | Which of the following is a security on a moveable property?
- pledge
- mortgage
- hypothecati on
- lien
Q19 | Time value of Money is based on the principle of:
- a stich in time saves nine
- a bird in hand; is worth two in a bush.
- as you sow; so shall you reap.
- hard work pays in the long run
Q20 | An ideal liquid ratio must be -----
- 1 : 1
- 1 : 2
- 2 : 1
- 1.33 : 1
Q21 | The abbreviation "SIP" in a mutual fund stands for-----
- simple investment plan
- systematic investment plan
- small investment plan
- social investment programme
Q22 | In case of Mutually Exclusive proposals
- only the best project is selected
- all projects with positive npv is are selected
- even negative npv project may be selected
- at least two proposals are selected
Q23 | Payback period Technique is based on
- all cash flows
- only higher cash flows
- earlier cash flows
- selected cash flows
Q24 | Which of the following method of evaluation of capital budgeting proposals focuses on liquidity?
- internal rate of return
- net present value
- accounting rate of return
- payback period
Q25 | Which of the following methods focuses the maximisation of wealth of shareholders?
- accounting rate of return
- payback period
- profitability index
- internal rate of return