Business Finance MCQs

Debentures can best be described as a form of

A business concern should not have

The rate of dividend of preference shares is decided at the time of

. . . . . . . . refers to make up of a firm's capitalisation.

Match the items of List-I with the items of List-II. List-I List-II a. Maturity Financing 1. Trade credit and other payables that arise in the firm's day-to-day operations. b. Factoring 2. Financing and asset needs over time. c. Spontaneous Financing 3. A tool for accelerating the collection from the customers. d. Lockbox System 4. Seeking financial service to finance on its debtor's balances.

Public deposits are the deposits, that are raised directly from

Once we define working capital as current assets, it can be further classified according to

Indicate the incorrect statement (i) Credit risk is a loss on account of a default of repayment of a loan. (ii) Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm. (iii) Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up. (iv) Hedging risk for a long position is accomplished by taking a short position and vice versa.

Which technique is common used to estimate the cash flow in multinational capital budgeting?