Business Finance MCQ Questions and Solutions with Explanations

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-7

In which of the following stock exchanges, the GDRs are listed?
1. London Stock Exchange
2. New York Stock Exchange
3. Luxembourg Stock Exchange
4. Bombay Stock Exchange
5. Singapore Stock Exchange
6. Hong Kong Stock Exchange
Select the correct answer using the options given below

A) 1, 2 and 3 B) 1, 4, and 6 C) 3, 5 and 6 D) 1, 3, 5 and 6

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Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

A management philosophy incorporating a 'pull' system of producing or purchasing components and products in response to customer demand describes

A) Kanban B) Optimized Production Technology (OPT) C) Materials Requirement Planning (MRP) D) Just in Time (JIT)

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Answer & Solution

Answer: Option D

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Where desired rate of return is/are not known, which method of present value technique is adopted?

A) TAR method B) Profitability index C) NPV method D) None of the above

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Answer & Solution

Answer: Option A

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Capital structure designing has nothing to do with

A) profitability B) solvency C) flexibility D) transferability

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Answer & Solution

Answer: Option B

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There are 19 nations part of the Eurozone. The EU member nations are expected to meet some economic conditions set in the Maastricht Treaty in 1992. Those conditions are also called

A) Assimilation criteria B) Divergence criteria C) Convergence criteria D) Eurozone criteria

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Answer & Solution

Answer: Option C

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The core of the Brettonwoods system was the

A) World Bank B) IMF C) United Nations D) Interstate Commerce Commission

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Answer & Solution

Answer: Option A

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Which of the following items describes an index measure of systematic risk?

A) Beta B) Standard deviation C) Coefficient of variation D) Variance

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Answer & Solution

Answer: Option A

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Match the following.

List-I (Term)	List-II (Source)
a. Long-term	1. Factoring Bank
b. Medium-term	2. Debentures
c. Short-term	3. Lease financing

A) a-3, b-1, c-2 B) a-1, b-2, c-3 C) a-2, b-3, c-1 D) a-1, b-3, c-2

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Answer & Solution

Answer: Option C

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Assertion (A): Investors in the capital market seem to be inclined to fixed income securities.
Reason (R): Debt instruments now have an active secondary market.

A) (A) and (R), both are correct, and (R) is the correct explanation of (A) B) (A) and (R) both are correct, but (R) is not the correct explanation of (A) C) (A) is correct, but (R) is incorrect D) (A) is not correct, but (R) is correct

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Answer & Solution

Answer: Option C

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Cost of depreciation fund is the

A) explicit cost B) average cost C) implicit cost D) None of these

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Answer & Solution

Answer: Option D

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