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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-3 section-4

Each section contains 100 MCQs on Business Finance .
21
The concept of cost of capital can also be explained in terms of . . . . . . . . cost.
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Answer & Solution
Answer: Option A
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22
Beta factors based on historical data may be a poor basis for future decision making. It is on the basis of evidence that suggests
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Answer & Solution
Answer: Option B
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23
Transaction costs include
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Answer & Solution
Answer: Option A
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24
Match the following.
List-I List-II
a. Gross working capital 1. Difference of current assets and current liabilities
b. Net working capital 2. It is referred to as "hardcore working capital"
c. Permanent working capital 3. It is the excess of working capital over permanent working capital
d. Variable working capital 4. Total current assets
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Answer & Solution
Answer: Option A
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25
Which of the following statements are true on wealth maximization?
(i) It takes into account the long-term approach.
(ii) It recognizesthe risk of uncertainty.
(iii) It takes into account the time value of money.
(iv) It takes into account the returns.
(v) It ignores stock market prices.
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Answer & Solution
Answer: Option D
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26
If a firm moves from a 'conservative' working capital policy to an 'aggressive' policy, it should expect
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Answer: Option B
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27
A multinational company that is faced with mild interference upto complete confiscation of all assets is encountering
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Answer & Solution
Answer: Option C
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28
External source of finance do not include
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Answer: Option D
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29
A company has issued 10% perpetual debt of Rs. 1 lac at 5% premium. If the tax rate is 30%, then the cost of debt will be
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Answer & Solution
Answer: Option C
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30
Under a flexible exchange rate regime, governments can retain monetary policy independence because the external balance will be achieved by
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Answer & Solution
Answer: Option A
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