Business Finance MCQs

Cash flow management involves 1. Lock-box system 2. Marketable securities 3. Playing the float 4. Concentration bank account Select the correct answer:

Which of the following is not a source of credit information of prospective customers?

Match the items of List-I with those of List-II and indicate the correct answer: List-I List-II a. Net income approach 1. Working capital management b. Profitability index 2. Over capitalisation c. Concentration banking 3. Capital structure planning d. Lower rate of return 4. Capital budgeting decision

An agreement to exchange of one currency for another in one month is a

Which of the following are key benefits of Differential Voting Rights (DVRs)?

Which one of the following emphasises the qualitative aspects of working capital maangement?

Assertion (A): The IRR of a project is the discount rate which reduces its NPV to zero. Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.

Select the correct answer of the following statements Statement (I): A Global Depositary Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company. Statement (II): A GDR is similar to American Depositary Receipt (ADR). Statement (III): GDRs are called EDRs when private markets are anempting to obtain euros.

Select the correct answer regarding motives for holding inventories by firms. 1. Transaction motive 2. Environmental motive 3. Precautionary motive 4. Speculative motive 5. Competitive motive