71
Over capitalization may not be as a result of which of the following?
A)
Promotion of a company with inflated assets
B)
Application of low capitalization rate
C)
Shortage of capital
D)
Liberal dividend policy
Answer & Solution
Answer: Option
C
72
Capital structure and leverage decisions come in the ambit of
A)
Investment decisions
B)
Distribution decisions
C)
Financing decisions
D)
Dividend decisions
Answer & Solution
Answer: Option
C
73
Investment decision include
A)
expansion of existing business
B)
expansion of new business
C)
replacement
D)
All of the above
Answer & Solution
Answer: Option
D
74
Which of the following is/are an external source of finance?
A)
Lease financing
B)
Equity shares
C)
Retained earnings
D)
All of these
Answer & Solution
Answer: Option
A
75
Which of the following statement(s) is/are incorrect?
A)
Cost of capital means the rate of interest at which the capital has been collected
B)
Payback is one of the methods of evaluating investment proposals
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
A
76
Match the following.
List-I List-II
a. Qualitative
1. . . . . . . . . involves raising funds on the security of the company's.
b. Gross working capital
2. Gross working capital is the . . . . . . . . approach.
c. Commercial Banks
3. Total of current assets is called as . . . . . . . .
d. Factoring
4. . . . . . . . . are also principal sources of working capital.
A)
a-4, b-3, c-2, d-1
B)
a-2, b-1, c-4, d-3
C)
a-3, b-1, c-4, d-2
D)
a-2, b-3, c-4, d-1
Answer & Solution
Answer: Option
D
77
The internal sources of finance do not include:
A)
Retained earnings
B)
Better management of working capital
C)
Trade credit
D)
Ordinary shares
Answer & Solution
Answer: Option
D
78
Which of the following statement is/are correct?
A)
Public deposits have been very popular among Indian companies
B)
Central and State Governments provide short-term finance on easy terms
C)
Both A and B
D)
All of the above
Answer & Solution
Answer: Option
C
79
The form of a discount allowed on the issue of debentures is in the nature of
A)
Deferred Revenue Expenditure
B)
Capital loss
C)
Revenue loss
D)
Current loss
Answer & Solution
Answer: Option
B
80
. . . . . . . . is long-term planning for making and financing proposed capital outlays.
A)
Capital budgeting
B)
Working capital management
C)
Planning for capital
D)
None of the above
Answer & Solution
Answer: Option
A
