1)     Public issue of debentures or bonds now
require
a)    Compulsory
credit rating
b)    Unanimous
voting
c)    permission
from banks
d)    Profitability
ANS: A
 
2)     The risk free Interest rate is composed of
a)    An
Inflation premium and a default risk premium
b)    A
default risk premium and a maturity risk premium
c)    A
real rate of interest and liquidity premium
d)    A
real rate of interest and an inflation premium
ANS: D
 
3)     NPV consider benefits during … life of the
project
a)    Entire
b)    Starting
c)    Ending
d)    Middle
ANS: A
 
4)     ……..is not a inventory
a)    Machine
b)    Raw
material
c)    Finished
products
d)    Consumable
tools
ANS: A
 
5)    …….brings
cost of project & it’s cash inflows to equality
a)    NPV
b)    IRR
c)    PBP
d)    profitability
index
ANS: B
 
6)    which
one of the following is an owned capital
a)    debentures
b)    equity
shares
c)    loan
from financial institutions
d)    bonds
ANS: B
 
7)     working capital requirements depends on ..of
an organisation
a)    current
Assets
b)    Bank
balance
c)    Fixed
assets
d)    Size
ANS: C
 
8)     DSO stands for.
a)    Debtors
sales outstanding
b)    days
sales outsourcing
c)    days
sales outstanding
d)    debtors
supply outsourcing
ANS: C
 
9)     profit maximisation is also called as
a)    Cashing
per share maximization
b)    giving
per share maximization
c)    procuring
per share maximization 
d)    banking
per share  maximization
ANS: B
 
10) …….
is a situation where a constraint or budget ceiling is placed on the total size
of capital expenditure during a particular period
a)    capital
rationing
b)    capital
budgeting
c)    cost
capital
d)    capital
investment
ANS: A
 
11)  if sales is RS 
2000 variable cost is Rs 1200 fixed cost Rs 400 and interest is Rs 100
what is combine leverage
a)    2
b)    0.5
c)    33
d)    67
ANS: D
 
12)  manufacturing organisation requires
a)    Larger
working capital
b)    smaller
working capital
c)    moderate
working capital
d)    no
working capital
ANS: A
 
13)  which of the following approach consider
average rate of return realized in the past few years is historical regarded as
expected return. 
a)    NPV
approach
b)    realized
yield approach
c)    price
earning approach
d)    mm
approach
ANS: B
 
14)  working capital required is treated as… in
capital budgeting
a)    cash
outflow
b)    cash
inflow
c)    cost
of capital
d)    cost
of goodwill
ANS: B
 
15)  Find odd one out
a)    Share
capital
b)    Investment
c)    Loan
d)    Reserves
ANS: B
 
16)  the purpose of …is to divide all of a
company stock into three groups
a)    EOQ
b)    H.ML
classification
c)    perpetual
inventory system
d)    abc
analysis
ANS: A
 
17)  Profit maximisation is also called as
a)    cashing
per share maximisation
b)    giving
per share maximisation
c)    procuring
per share maximisation
d)    banking
per share maximization
ANS: B
 
18)  what trend is projected by profitability ratio
a)    cost
share and profit
b)    absolute
figures
c)    standards
d)    budgets
ANS: A
 
19)  If a project has cost of 6 crores.its plis 5
find its NPV
a)    3
b)    6
c)    9
d)    12
ANS: A
 
20)  Liquidity ratio indicate the ability of
company to meets it
a)    current
liability
b)    text
liability
c)    long
term obligations
d)    shareholders
claim
ANS: C
 
21)  working capital required it is treated as
……in capital budgeting
a)    cash
outflow
b)    cash
inflow
c)    cost
of capital
d)    cost
of goodwill
ANS: B
 
22)  the cost insurance and text are included in
….
a)    cost
of ordering
b)    set
up cost
c)    inventory
carring cost
d)    cost
of shortage
ANS: C
 
23)  Finance function involve …
a)    procurement
of finance only
b)    expenditure
of fund only
c)    safe
custody
d)    procurement
and effective utilisation of funds
ANS: D
 
24) ……
brings cost of project and it’s cash inflow to rquality
a)    NPV
b)    IRR
c)    PBP
d)    profibility
index
ANS: B
 
25) ……..from
the following is not a capital structure theory
a)    net
income
b)    net
operating income
c)    Modigliani
miller
d)    arbitrage