Business Finance MCQ Questions and Solutions with Explanations | Commerce
Business Finance MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Business Finance MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-2 section-2
Each section contains 100 MCQs on
Business Finance .
Which of the following facts are true in the context of forfaiting?
1. Forfaiting enables exporters to receive immediate cash by selling their medium and long-term receivables - the amount an importer owes the exporterat a discount through an intermediary.
2. Banks never function as forfaiters.
3. Forfaiting protects against credit risk, transfer risk, and the risks posed by foreign exchange rate or interest rate changes.
Assertion (A): The management of working capital refers to the management of current assets and current liabilities. Reason (R): The major thrust is on the management
of current assets; because current liabilities arise in the context of current assets.
For the computation of cost of equity, arrange the following measures in the ascending order of accuracy
1. Capital Asset Pricing Model
2. Dividend-Price Ratio
3. Earning-Price Ratio
4. Dividend-Price Plus Growth Ratio