Business Finance MCQ Questions and Solutions with Explanations | Commerce

A. Transaction risk

B. Translation risk

C. Economic risk

D. All of the above

A. Both (A) and (R) are true

B. Both (A) and (R) are false

C. (A) is false, but (R) is true

D. (A) is true, but (R) is false

A. Long-term capital funds

B. Goverment assistance

C. Internal financing

D. Short-term loans from banks

A. Trade credit

B. Banknotes

C. Accounts payable

D. Common stock equity

A. Standards Industries Development Organization

B. Small Industries Development Organization

C. State Industrial Development Organization

D. None of these

A. Transferred to general reserve

B. Transferred to falling fund investment account

C. Charged against the firm's profits

D. Appropriation of the company's profits

A. Section 2(84)

B. Section 2(80)

C. Section 2(48)

D. Section 2(45)

A. Effective dividend policy is an important tool to achieve the goal of wealth maximisation

B. According to Walter, the optimal payout ratio for a growth firm is 100%

C. MM model asserts that the value of the firm is not affected whether the firm pays dividend or not

D. Bird-in-the-hand theory' in reference to dividend decision has been developed by Myron Gordon

A. All financing is done through ratained earnings

B. Firm's business risk does not change due to additional investments

C. The firm has an infinte life

D. The key vanables like EPS and DPS keep on changing

A. Ezra Solomon

B. Myron J. Gordon

C. James E. Walter

D. Merton H. Miller and Franco Modigliani