McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 51. |
The financial function for allocation of capital to long term assets is |
| A. | Capital structure |
| B. | Capital budgeting |
| C. | Working capital management |
| D. | Dividend policy |
| Answer» B. Capital budgeting | |
| 52. |
_____ is a source of long-term finance. |
| A. | Venture funding |
| B. | Hire-purchase finance |
| C. | Lease finance |
| D. | All of the above |
| Answer» D. All of the above | |
| 53. |
________________ calls for skillful planning, control and execution of a firm’s activities |
| A. | capital structure |
| B. | finance function |
| C. | working capital function |
| D. | dividend policy |
| Answer» B. finance function | |
| 54. |
One of the sources of seasonal working capital is |
| A. | Share Capital |
| B. | Debenture |
| C. | Indigenous Bankers |
| D. | Retained Profits |
| Answer» C. Indigenous Bankers | |
| 55. |
_______________ involves the decision of allocation of capital or commitment of funds to long-term assets that would yield benefits in the future |
| A. | Working capital |
| B. | Capital budgeting |
| C. | Dividend policy |
| D. | Capital structure |
| Answer» B. Capital budgeting | |
| 56. |
The objectives of financial management includes- |
| A. | Procurement of funds |
| B. | Optimum capital structure |
| C. | Utilization of funds |
| D. | All of the above |
| Answer» A. Procurement of funds | |
| 57. |
______________ management refers to current assets management which effects the firm’s liquidity and solvency |
| A. | Working capital |
| B. | Capital structure |
| C. | Dividend policy |
| D. | Capital budgeting |
| Answer» A. Working capital | |
| 58. |
The important factors that to be considered for dividend policy includes- |
| A. | Government tax policy |
| B. | Maintenance of reserves |
| C. | Legal restrictions |
| D. | All of the above |
| Answer» D. All of the above | |
| 59. |
Short-term finance is required to meet the expenses for- |
| A. | Payment of wages and salaries |
| B. | Cost of fixed assets |
| C. | Initial development expenditures |
| D. | Operating losses |
| Answer» A. Payment of wages and salaries | |
| 60. |
The only viable goal of financial management is: |
| A. | Profit maximization |
| B. | Wealth maximization |
| C. | Sales maximization |
| D. | Assets maximization |
| Answer» B. Wealth maximization | |
| 61. |
The extent to which the firm has fixed financing costs arising from the use of debt is measured by |
| A. | Combined leverage |
| B. | Operating leverage |
| C. | Financial leverage |
| D. | None of the above |
| Answer» C. Financial leverage | |
| 62. |
Which of the following is not a component of current assets? |
| A. | Cash |
| B. | Debtors |
| C. | Bills Payables |
| D. | Inventories |
| Answer» C. Bills Payables | |
| 63. |
The modern approach to finance functions considers which of the following? |
| A. | Investment decisions |
| B. | Financing decisions |
| C. | Dividend decisions |
| D. | All of the above |
| Answer» D. All of the above | |
| 64. |
A firm should select a financing mix which maximizes its value and the shareholders’ wealth. Such is referred to as |
| A. | Optimal Capital Ration |
| B. | Optimal Capital Budget |
| C. | Optimal Capital costs |
| D. | Optimal Capital structure |
| Answer» D. Optimal Capital structure | |
| 65. |
________ varies with the volume of operations |
| A. | Fixed/Permanent WC |
| B. | Fluctuating/Temporary WC |
| C. | Gross WC |
| D. | Net WC |
| Answer» B. Fluctuating/Temporary WC | |
| 66. |
Projects are accepted under profitability method, if |
| A. | PI > 1 |
| B. | PI = 1 |
| C. | PI < 1 |
| D. | PI = 0 |
| Answer» A. PI > 1 | |
| 67. |
A theory known as dividend irrelevance theory is: |
| A. | Walter’s Model |
| B. | Gordon’s Model |
| C. | Modigliani & Miller’s Model |
| D. | None of the above |
| Answer» C. Modigliani & Miller’s Model | |
| 68. |
“_______________ of a company refers to the make-up of its capitalization and it includes all long-term capital resources viz., loans, reserves, shares and bonds. - Gerstenberg. |
| A. | Capital Ration |
| B. | Capital Budget |
| C. | Capital costs |
| D. | Capital structure |
| Answer» D. Capital structure | |
| 69. |
Which of the following is not short-term source of capital/finance? |
| A. | Bank overdraft |
| B. | Trade credit |
| C. | Debenture |
| D. | Bills of exchange |
| Answer» C. Debenture | |
| 70. |
Trading on equity means |
| A. | Taking advantage of equity share capital to borrow funds on reasonable basis |
| B. | Taking advantage of the conditions prevailing in the capital market |
| C. | Taking advantage of prevailing rate of interest |
| D. | None of the above. |
| Answer» A. Taking advantage of equity share capital to borrow funds on reasonable basis | |
| 71. |
A good financial structure should be |
| A. | Flexible enough to have scope for expansion or contraction |
| B. | Flexible enough to convert working capital |
| C. | Flexible enough to lay down policies |
| D. | None of the above |
| Answer» A. Flexible enough to have scope for expansion or contraction | |
| 72. |
Financial planning is concerned with |
| A. | Financial control |
| B. | Investing in assets needed permanently for the business |
| C. | Developing business |
| D. | Laying down of policies in regard to cash control, etc. |
| Answer» D. Laying down of policies in regard to cash control, etc. | |
| 73. |
________ is traditionally considered as the main objective of the firm |
| A. | Wealth maximization |
| B. | Profit maximization |
| C. | Customer satisfaction |
| D. | Reduction in cost |
| Answer» B. Profit maximization | |
| 74. |
Funds needed for acquiring fixed assets are known as |
| A. | short term finance |
| B. | long term finance |
| C. | medium term finance |
| D. | public deposits |
| Answer» B. long term finance | |
| 75. |
Finance raised by ways of loans and credit from public, banks, and financial institutions is known as |
| A. | public deposits |
| B. | owned capital |
| C. | permanent capital |
| D. | borrowed capital |
| Answer» D. borrowed capital | |
| 76. |
Shares which are not only entitled to a fixed preferential dividend but also participate in the surplus profits are known as |
| A. | cumulative preference shares |
| B. | participating preference shares |
| C. | convertible preference shares |
| D. | non- participating preference shares |
| Answer» A. cumulative preference shares | |
| 77. |
The company is usually required to pledge assets of the company to the lender as collateral under |
| A. | equity financing |
| B. | debt financing |
| C. | borrowed capital |
| D. | retained earnings |
| Answer» B. debt financing | |
| 78. |
The process of allocating scarce resources of a business firm among the competing investment projects can be considered as |
| A. | investment decision |
| B. | financing decision |
| C. | dividend decision |
| D. | financial management |
| Answer» A. investment decision | |
| 79. |
According to MM approach, the total value of the firm remain |
| A. | variant |
| B. | decrease |
| C. | increase |
| D. | constant |
| Answer» D. constant | |
| 80. |
Working capital is the proportion of the total capital which is employed in |
| A. | long term |
| B. | short term or current operations |
| C. | middle term |
| D. | fixed term |
| Answer» B. short term or current operations | |
| 81. |
The manager who looks after the activities of the Finance Department is known as |
| A. | Accountant |
| B. | Financial Manager |
| C. | Cashier |
| D. | None of these |
| Answer» B. Financial Manager | |
| 82. |
_____________is the particular combination of debt & equity used by a company of finance its overall operations and growth. |
| A. | Dividend decision |
| B. | Capital budgeting |
| C. | Capital structure |
| D. | Investment decision. |
| Answer» C. Capital structure | |
| 83. |
______________involves raising money by selling interests in the company. |
| A. | Equity |
| B. | Debt |
| C. | Bond |
| D. | None of these |
| Answer» A. Equity | |
| 84. |
Financial management involves |
| A. | Investment decisions |
| B. | Financing decisions |
| C. | Dividend decisions |
| D. | All of the above |
| Answer» D. All of the above | |
| 85. |
Financial management is mainly concerned with_________ |
| A. | All aspects of acquiring & utilizing financial resources for firms activities. |
| B. | Arrangement of funds |
| C. | Efficient management of every business. |
| D. | Profit maximization. |
| Answer» A. All aspects of acquiring & utilizing financial resources for firms activities. | |
| 86. |
The primary goal of financial management is |
| A. | To maximize the return |
| B. | To minimize the risk |
| C. | To maximize the wealth of owners |
| D. | To maximize profit. |
| Answer» C. To maximize the wealth of owners | |
| 87. |
_____________are financial assets |
| A. | Bonds |
| B. | Machines |
| C. | Stocks |
| D. | B and C. |
| Answer» D. B and C. | |
| 88. |
Human resource management seeks to accomplish |
| A. | Societal goals |
| B. | Organisational goals |
| C. | Individual goals |
| D. | All of the above |
| Answer» D. All of the above | |
| 89. |
____________ is concerned with manpower planning, recruitment, selection, placement, induction, transfer. |
| A. | The labour aspect |
| B. | The welfare aspect |
| C. | The industrial relation aspect |
| D. | None of the above |
| Answer» A. The labour aspect | |
| 90. |
Which activity involves design of policies and procedures for fair recruitment and selection of human resource? |
| A. | Human resource planning |
| B. | Recruitment and selection |
| C. | Training and development |
| D. | Job design |
| Answer» B. Recruitment and selection | |
| 91. |
The process of HR planning includes |
| A. | Business strategic plan |
| B. | Resourcing strategy |
| C. | Scenario planning |
| D. | All of the above |
| Answer» D. All of the above | |
| 92. |
Job description includes |
| A. | Job title |
| B. | Job analysis |
| C. | Supply forecasting |
| D. | None of the above |
| Answer» A. Job title | |
| 93. |
__________________is the process through which the organisation seeks applicants for potential employment |
| A. | Selection |
| B. | Employment interview |
| C. | Recruitment |
| D. | All of the above |
| Answer» C. Recruitment | |
| 94. |
Which one is not methods of training? |
| A. | Classroom |
| B. | Vestibule |
| C. | Promotional |
| D. | Apprenticeship |
| Answer» C. Promotional | |
| 95. |
Which of the following is/are types of training? |
| A. | Orientation training |
| B. | Promotional training |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» C. Both (a) and (b) | |
| 96. |
The objectives of compensation includes- |
| A. | Allure qualified personnel |
| B. | Keep qualified human resource |
| C. | Performance appraisal and provide for progression |
| D. | All of the above |
| Answer» D. All of the above | |
| 97. |
Human resource management functions does not include |
| A. | HR planning |
| B. | Budgeting |
| C. | Selection |
| D. | Training |
| Answer» B. Budgeting | |
| 98. |
The essential elements of employer-employee relationship includes |
| A. | Mutual respect |
| B. | Openness and communication |
| C. | Mutual reliance |
| D. | All of the above |
| Answer» D. All of the above | |
| 99. |
On-the-job training includes |
| A. | Vestibule training |
| B. | Under study |
| C. | Position rotation |
| D. | All of the above |
| Answer» C. Position rotation | |
| 100. |
The importance of human resource management includes |
| A. | Optimum utilization of human resources |
| B. | People centered function of management |
| C. | Develops dynamic strategies for goal accomplishment |
| D. | All of the above |
| Answer» D. All of the above | |
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