ExamVeda
Login
Home

Financial Management MCQ Questions and Solutions with Explanations | Commerce

Financial Management 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. Financial Management 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-10 section-10

Each section contains 100 MCQs on Financial Management .
91
Professionals such as doctors, accountants and lawyers often make corporations are classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Professionals such as doctors, accountants and lawyers often make corporations are classified as Professional Corporation and professional association.
92
Markets which deals with high liquid and short term debt securities are classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Markets which deals with high liquid and short term debt securities are classified as money markets. The money market is the trade in short-term debt investments.
93
Low default-risk security issued by financially secure firms is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Low default-risk security issued by financially secure firms is classified as commercial paper. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.
94
Firm's promise to pay and is backed or guaranteed by bank is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Firm's promise to pay and is backed or guaranteed by bank is classified as banker's acceptance. A banker's acceptance (BA) is a short-term debt instrument issued by a company that is guaranteed by a commercial bank. Banker's acceptances are issued as part of a commercial transaction.
95
Financial markets include
Discuss
Answer & Solution
Answer: Option D
Solution:
Financial markets include primary markets, capital markets and physical asset markets.
96
Funds which are used as an interest-bearing checking accounts are classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Funds which are used as an interest-bearing checking accounts are classified as money market funds. A money market fund is a kind of mutual fund that invests only in highly liquid instruments such as cash, cash equivalent securities, and high credit rating debt-based securities with a short-term, maturity—less than 13 months.
97
Physical location exchange or telephone networks are types of
Discuss
Answer & Solution
Answer: Option B
Solution:
Physical location exchange or telephone networks are types of secondary markets. The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.
98
Method of matching orders by posting orders of buying and selling is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Method of matching orders by posting orders of buying and selling is classified as electronic communication network. An electronic communication network (ECN) is a computerized system that automatically matches buy and sell orders for securities in the market.
99
An earning of business which is available for free distribution to all stockholders and creditors is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
An earning of business which is available for free distribution to all stockholders and creditors is classified as free cash flows. Free cash flow represents the cash a company generates after cash outflows to support operations and maintain its capital assets.
100
Business owned by a single person in unincorporated way is called
Discuss
Answer & Solution
Answer: Option A
Solution:
Business owned by a single person in unincorporated way and self controlled is called proprietorship. A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run or managed by single person and in which there is no legal distinction between the owner and the business entity.