Business Finance MCQs
Practice free Business Finance multiple-choice questions with instant answer feedback and step-by-step solutions. Click an option to check yourself, reveal the full explanation, and work through all 844 questions — no login required.
Question 838hard
Which of the following are the main features of an operating lease?
(i) Operating lease is off-balance-sheet financing.
(ii) The lease period is shorter than the useful life of the leased asset.
(iii) The lease agreement will never have a cancellation clause.
(iv) The operating lease is also called service lease.
(i) Operating lease is off-balance-sheet financing.
(ii) The lease period is shorter than the useful life of the leased asset.
(iii) The lease agreement will never have a cancellation clause.
(iv) The operating lease is also called service lease.
Question 839hard
Arrange the following steps of operation cycle in correct order
1. Conversion of a accounts receivables into cash.
2. Conversion of work-in-progress into finished goods.
3. Conversion of raw-material into work-in-progress.
4. Conversion of finished goods into accounts receivable.
1. Conversion of a accounts receivables into cash.
2. Conversion of work-in-progress into finished goods.
3. Conversion of raw-material into work-in-progress.
4. Conversion of finished goods into accounts receivable.
Question 840hard
Indicate the cost of equity capital, based on the capital asset pricing model, with the following information:
Beta coefficient - 1.40
Risk-free rate of interest - 9%
Expected Rate of Return on equity in the market - 16%
Beta coefficient - 1.40
Risk-free rate of interest - 9%
Expected Rate of Return on equity in the market - 16%
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Question 841medium
Hedging in finance refers to protecting investments. What are the areas where hedging is applied?
(i) Securities market
(ii) Commodities market
(iii) Interest Rates
(iv) Currencies
(i) Securities market
(ii) Commodities market
(iii) Interest Rates
(iv) Currencies
Question 842hard
Match the following.
| List-I | List-II |
| a. Depreciation funds | 1. . . . . . . . . is comparatively cheap. |
| b. Public deposits | 2. . . . . . . . . is the internal source of financing short-term working capital. |
| c. Term loans | 3. . . . . . . . . have been very popular among Indian companies. |
| d. Bank credit | 4. . . . . . . . . are resources raised for a period from 3 to 5-7 years. |
Question 843hard
Select the correct answer of the following statements
Statement (I): A Global Depositary Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company.
Statement (II): A GDR is similar to American Depositary Receipt (ADR).
Statement (III): GDRs are called EDRs when private markets are anempting to obtain euros.
Statement (I): A Global Depositary Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company.
Statement (II): A GDR is similar to American Depositary Receipt (ADR).
Statement (III): GDRs are called EDRs when private markets are anempting to obtain euros.
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Question 844hard
Match the items of the following lists and suggest the correct answer:
| List-I | List-II |
| a. Payback Rate of Return | 1. Discounted Cash Flow Technique |
| b. Internal Rate of Return | 2. Compounded values of investments and returns |
| c. Benefit Cost Ratio | 3. Crude method for project evaluation |
| d. Net Terminal Value Method | 4. Varying-sized projects evaluation |