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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.

Each section contains 100 MCQs on Business Finance .
1
The appropriate ratio for indicating liquidity crisis is
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Answer: Option D
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2
Interim cash inflows are reinvested at a rate of return equal to the internal rate of return is the built-in mechanism for
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Answer: Option B
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3
Match List-I with List-II and select the correct answer:
List-I List-II
a. Modigliani Miller approach 1. Commercial papers
b. Net operating income approach 2. Working capital management
c. Short-term money market instrument 3. Capital structure
d. Factoring 4. Arbitrage
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Answer: Option B
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4
Which one of the following assumptions is not included in the James E. Walter Valuation model?
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Answer: Option C
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5
Which of the following is an implicit cost of increasing proportion of debt of a company?
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Answer: Option D
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6
Indicate the cost of equity capital based on capital asset pricing model with the following information. Beta coefficient 1.40 Risk free rate of interset 9% Expected rate of return on equity in the market 16%
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Answer: Option C
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7
Profitability index of a project is the ratio of present value of cash inflows to
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Answer: Option C
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8
Dividend irrelevance hypothesis implied in the
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Answer: Option D
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9
The international monetary system went through several distinct stages of evolution. These stages are summarised, in alphabetic order, as follows
1. Bimetallism
2. Brettonwoods system
3. Classical gold standard
4. Flexible exchange rate regime
5. Interwar period
The chronological order that they actually occurred is
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Answer: Option B
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10
If we move from present value to calculate the future value, we can use the concept of compounding rate. If we were to move from future value towards the calculation of present value, the concept used will be
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Answer: Option C
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