Business Finance MCQs

Question 1

Which of the following indicates the concept of net working capital?

Accepted Answer

Current assets minus current liabilities

Answer

Total assets

Answer

Fixed assets

Answer

Current assets

Question 2

Cost of capital does not mean

Accepted Answer

money paid to SEBI for permission to acquire capital

Answer

cut off rate decided by management

Answer

rate of interest

Answer

expectations of investors for dividend

Question 3

"Hardcore working capital" is also called

Accepted Answer

permanent working capital

Answer

variable working capital

Answer

gross working capital

Answer

net working capital

Question 4

The following method cannot be used for managing translation exposure.

Accepted Answer

Option contract

Answer

Forward contract

Answer

Exposure netting

Answer

Leading and lagging

Question 5

Finance made available by specialised financial institutions is called

Accepted Answer

institutional finance

Answer

business finance

Answer

public finance

Answer

All of these

Question 6

Which of the following are part of investment decision by an organization? (1) Cost of capital (2) Measuring risk (3) Expansion and contraction of business activities (4) Buy, hire, or lease an asset

Accepted Answer

1, 2, 3 and 4

Answer

1, 2 and 3

Answer

2, 3 and 4

Answer

1, 3 and 4

Question 7

If an investor buybacks a volatile stock, which of the following should be the best option?

Accepted Answer

Limit order

Answer

Market order

Answer

Stop-loss order

Answer

Contingency order

Question 8

The dividend paid on preference share is not deductible expenditure for

Accepted Answer

corporate tax

Answer

income tax

Answer

gift tax

Answer

property tax

Question 9

Which of the following financial asset is/are traded in international financial market?

Accepted Answer

All of the above

Answer

Bonds

Answer

Stocks

Answer

Derivatives