Business Finance MCQs

Which of the following can be taken as the core principles of finance? (i) There is time value of money. (ii) There are risks and returns involved in financial decisions. (iii) Lower risk asks for higher returns. (iv) Risk is not volatile. (v) The market has increasingly become a more determining factor of finance decisions.

The total return on a security is equal to the following

An example of Euro currency is

Long-term sources of finance are also required for

A leased asset should be depreciated over the

Match the following. List-I List-II a. Payback method 1. Give due weightage to the profitability of project b. Unadjusted rate of return method 2. Predetermination of earnings is not necessary c. NPV method 3. It avoids in calculable risk and uncertainty d. IRR method 4. Its calculation is much simpler

Advantages of adequate working capital funds include

Some equity schemes take opposite positions in different market segments, such that a return is earned while remaining risk neutral. They are called

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