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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-3

Each section contains 100 MCQs on Business Finance .
11
Personal saving
1. is that part of personal income, i.e. is not consumed.
2. equals income minus consumption.
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Answer & Solution
Answer: Option C
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12
Assertion (A): The primary motive of a company in using financial leverage is to magnity shareholder's return under favourable economic conditions.
Reason (R): To magnify shareholder's return fixed charges, funds can be obtained at a cost higher than the firm's rate of return on net assets.
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Answer & Solution
Answer: Option B
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13
The financial analysts says, working capital means the same things as
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Answer & Solution
Answer: Option A
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14
Match the following.
List-I List-II
a. Shares 1. Fixed capital
b. Land and building 2. Period of medium-term finance
c. Public deposits 3. Source of long-term finance
d. 1-5 years 4. Short-term finance
e. Meeting day-to-day requirements 5. Source of medium-term finance
Discuss
Answer & Solution
Answer: Option B
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15
From the following information of ABC Ltd, determine the market price of a share using Gordon's model.
Total investment in assets = Rs. 10,00,000
Number of shares = 50,000
Total earnings = Rs. 2,00,000
Cost of capital = 16%
Payout ratio = 40%
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Answer & Solution
Answer: Option B
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16
Financing a long lived assets with short-term financing would be
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Answer & Solution
Answer: Option C
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17
In a land lease, if title does not pass at the end of a lease to the lessee, it is normally treated as
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Answer & Solution
Answer: Option B
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18
Match the following.
List-I (Source of Fund) List-II (Example)
a. Commercial Bank 1. IFCT
b. International Capital Market 2. SBI
c. International Commercial Bank 3. GDR
d. Financial Institution 4. Standard Chartered Bank (SCB)
Discuss
Answer & Solution
Answer: Option D
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19
Which of the following statements is most correct?
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Answer & Solution
Answer: Option A
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20
In which of the following terms, the quotas are denominated in IMF?
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Answer & Solution
Answer: Option A
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