Business Finance MCQs

Which of the following sets out concisely the information about the scheme that a prospective investor ought to know before investing?

Insufficient working capital may result in which combination of the following? I. Failures to adapt to changes. II. Enhancement in credit-worthiness of the firm. III. Reduced availability of trade and cash discounts. IV. Reduced volume of sales.

Assertion (A): The weighted average cost of capital should be used as a hurdle rate for accepting or rejecting a capital budgeting proposal. Reason (R): By financing in the proportions specified and accepting the project, yielding more than the weighted average required return, the firm is able to increase the market price of its stock.

Which of the following statements are false? 1. Share capital issued by a company for the first time is known as venture capital. 2. All venture capital funds in India are promoted by the government. 3. In addition to capital, venture capitalists provide managerial and technical support to the assisted firms. 4. The benefits of venture capital financing can be realizedin long-run only.

Participating preference shares are those participating in the

Consider the following statements. 1. Payback period method measures the true profitability of a project. 2. Capital rationing and capital budgeting mean the same thing. 3. Internal rate of return and time adjusted rate of return mean the same thing. 4. Rate of return method takes into account the time value of money. Which of the statement(s) given above is/are correct?

Match the following. List-I List-II a. Urgency method 1. It avoids in calculable risk and uncertainty in the long run b. Payback method 2. Also known as net gain method c. Unadjusted rate of return method 3. It is simple for the project with too large outlay d. Net present value method 4. Also known as financial statement method

Special Drawing Right (SDR) are

What is Hawala?