Scribd
Upload
52 views4 pages

MCom Sem2 Corporate Finance

The document consists of a series of multiple-choice questions related to corporate finance concepts, including functions of finance, financial management, liquidity, profitability, and various financial ratios. It covers topics such as earnings per share (EPS), share capital, debentures, investment preferences, and dividend distribution. The questions aim to test knowledge on financial decision-making and the principles of financial management.

Uploaded by

yyashumrotkar05
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
52 views4 pages

MCom Sem2 Corporate Finance

The document consists of a series of multiple-choice questions related to corporate finance concepts, including functions of finance, financial management, liquidity, profitability, and various financial ratios. It covers topics such as earnings per share (EPS), share capital, debentures, investment preferences, and dividend distribution. The questions aim to test knowledge on financial decision-making and the principles of financial management.

Uploaded by

yyashumrotkar05
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Corporate Finance Sem2

1. One of the following is not a function of finance


a. Investment
b. Dividend
c. Financing
d. Production
2. Following is not a function of a finance manager
a. Human Resource Management
b. Budgeting
c. Forecasting
d. Financing
3. Liquidity and profitability bear relationship
a. Adverse
b. Inverse
c. Direct
d. Indirect
4. EPS stands for
a. Expenses per share
b. Earning per share
c. Earning per stock
d. Earning per saving
5. The objective of financial management is _______ maximisation.
a. Finance
b. Continuous
c. Wealth
d. Cash
6. Share Capital is included in _______.
a. Loan fund
b. Gain
c. Own fund
d. Debt
7. Debentures are included in _______.
a. Assets acquisition
b. Own fund
c. Loan fund
d. Reserves
8. The reasons to prefer money as present is _________.
a. Investment option
b. Future needs
c. Risk free rate
d. IRR
9. An Individual gives time preference to money due to
a. Investment options
b. Future needs
c. Risk free rate
d. IRR
10. The discount rate should be ___________ to decrease the given future value
a. Decreased
b. Increased
c. minimised
d. Remains same
11. ________ process of investing money as well as reinvesting interest
a. Compounding
b. P.V.Approach
c. Annuity
d. Discounting
12. ________ is a stream of constant cash flow occurring at regular intervals
a. Compounding
b. P.V.Approach
c. Annuity
d. Discounting
13. Current ratio shows
a. Short term financial position
b. Financial stability
c. Collection efficiency
d. Higher profitability
14. One of the following is not an absolute liquid asset
a. Cash balance
b. Bank Balance
c. Bills Receivable
d. Marketable securities
15. High geared company exposes to
a. Business risk
b. Financial risk
c. Inflation risk
d. Interest risk
16. Fixed Interest bearing funds do not include one of the following :
a. Debenture
b. Long term investment
c. Preference capital
d. Public Deposit
17. Proprietary ratio is a proportion between
a. Proprietary and Equity Capital
b. Proprietary Fund and Sales
c. Proprietors Fund and Total Assets
d. Proprietors Fund and Sales
18. 2 : 1 is a standard
a. Debt equity ratio
b. Current ratio
c. Liquid ratio
d. Proprietary ratio
19. Cost of Preference Share Capital depends on _____.
a. Rate of dividend
b. Rate of Interest
c. Tax Rate
d. Cost of Equity
20. Financial decisions are based on
a. cost of capital
b. capital
c. fixed assets
d. human resources
21. Cost of a specific source of capital is
a. specific cost
b. composite cost
c. historical cost
d. Total Cost
22. Combined cost of various sources of capital is
a. composite cost
b. marginal cost
c. specific cost
d. average cost
23. Part of income distributed to shareholders.
a. Profit
b. Loss
c. Dividend
d. Retained Profit
24. Guideline for issue of bonus shares are issued by
a. SEBI
b. RBI
c. Income Tax Act
d. Company Law
25. Dividend is payable to
a. Shareholders
b. Creditors
c. Stock holders
d. Managers

You might also like