Business Finance MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8

1.
Translation exposure arises in respect of items translated at

A. current rate

B. historical rate

C. average rate

D. All of these

A. P.E.Ratio of the company would increase

B. Rate of return of the company would decrease

C. Tax-shield would not be available on new debts

D. Equity shareholders would demand a higher return

A. C - (O.C/number of working days in the period) × COGS

B. D - (O.C/number of working days in the period) × COGS

C. C × (O.C/number of working days in the period) × COGS

D. C + (O.C/number of working days in the period) × COGS