Business Finance MCQs

Which of the following are the means of marketing new issues of securities?
1. By listing of securities.
2. Through jobbers and brokers.
3. By private placing of securities.
4. Through privileged subscription.
Select the correct answer by using the options given below

Factors that are considered to solve the financial problems of business organisations are
1. cost of capital supply
2. importance and objectives of capital
3. different types of benefits
Select the correct answer by using the options given below

The single European currency, the euro, was adopted by 11 member nations on 1^st January, . . . . . . . .

Assertion (A): The primary motive of a company in using financial leverage is to magnity shareholder's return under favourable economic conditions.
Reason (R): To magnify shareholder's return fixed charges, funds can be obtained at a cost higher than the firm's rate of return on net assets.

Assertion (A): Acompany should pay a minimum dividend to its shareholders.
Reason (R): Dividends are heavily taxed than capital gains.

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

Match the following.

List-I	List-II
a. Depreciation funds	1. Its use has increased in recent years due to use of trade squeeze
b. Provision for taxation	2. Some authors do not accept them as a source of funds, but it is not reasonable
c. Accrued expenses	3. It can be used during the intermittent period
d. Trade credit	4. The firm can postpone the payment of expenses for short periods

Consider the following statements.
In case of overcapitalisation,
1. market value of shares come down from its face value.
2. organisation failed to earn sufficient profit.
Which of the statement(s) given above is/are correct?

Personal saving
1. is that part of personal income, i.e. is not consumed.
2. equals income minus consumption.