Business Finance MCQs

Question 1

Which of the following are the main benefits of non-voting shares to a company?

Accepted Answer

All of the above

Answer

It may protect the company from hostile takeovers

Answer

The voting rights may not be provided to such shareholders

Answer

Non-voting shareholders may be given a higher dividend

Question 2

The Finance Act, 2020, changed the method of dividend taxation. Which of the following facts are related to dividend taxation?

Accepted Answer

All of the above

Answer

The dividend receivedfrom an Indian company was exempt until 31st March 2020 (FY2019-20), as the company declaring such dividend already paid dividend distribution tax before making payment

Answer

All the dividend receivedon or after 1st April 2020, is taxable in the hands of the investor or shareholder

Answer

The DDT liability on companies and mutual funds stand withdrawn

Question 3

Which of the following can be defined as the cost of capital from an investor's point of view?

Accepted Answer

Yield of Capital Sacrificed

Answer

Interest Rate

Answer

Market Value

Answer

Stock Exchange Value

Question 4

In an agreement to exchange one currency for another in three months at a fixed price, the price is the . . . . . . . .

Accepted Answer

forward exchange rate

Answer

spot exchange rate

Answer

money exchange rate

Answer

monthly exchange rate

Question 5

ADRs and GDRs are an excellent means of investment to invest in India for

Accepted Answer

Both A and B

Answer

NRl's

Answer

Foreign nationals

Answer

None of the above

Question 6

Internal sources of capital are those that are

Accepted Answer

generated within the business

Answer

generated through outsiders such as suppliers

Answer

generated through loans from commercial banks

Answer

generated through issue of shares

Question 7

In case the sales or project's investment deviates from expected ones, it needs

Accepted Answer

Financial break-even analysis

Answer

Optimistic scenario analysis

Answer

Sensitivity analysis

Answer

Simulation analysis

Question 8

Match the following: List-I List-II a. Capital Budgeting 1. Time adjusted rate of return b. Profitability Index 2. Irreversible c. Internal rate of return 3. Benefit/cost d. Capital investment decisions 4. Planning capital expenditure

Accepted Answer

a-4, b-3, c-1, d-2

Answer

a-4, b-3, c-2, d-1

Answer

a-1, b-4, c-2, d-3

Answer

a-2, b-1, c-3, d-4

Question 9

Which of the following option forbids the future pledging or mortgaging of any of the borrower's assets?

Accepted Answer

Negative pledge clause

Answer

Covenant

Answer

Loan agreement

Answer

General routine provision