Financial Management MCQ Questions and Solutions with Explanations | Commerce

A. is selling at a discount

B. is selling at a premium

C. is an index fund

D. is an exchange traded fund

A. generate the maximum net profit

B. generate the maximum retained earnings

C. generate the maximum wealth for its shareholders

D. generate maximum funds for the firm at the least cost.

A. the underwriter has an exclusive right to distribute shares

B. the underwriter selects the securities in the portfolio

C. there is no risk to the issuer of the mutual fund

D. there is no risk to the investor of the mutual fund.

A. contribution / EBIT

B. contribution / EBT

C. contribution / total expenses

D. contribution / operating PBT

A. Syndicate offer

B. IPO

C. Prospectus

D. Shelf rule.

A. debt-equity mix

B. debt-capital mix

C. equity expenses mix

D. debt-interest mix

A. The principal is redeemable at maturity

B. A debenture-holder enjoys prior claim on the assets of the company over its shareholders in the event of liquidation

C. trustee is appointed to preserve the interest of the debenture holders

D. All the above.

A. Sales - Variable cost

B. Contribution - Fixed cost

C. Sales - Fixed cost

D. All the above

A. primary market

B. secondary market

C. A and B both

D. None of above

A. no par stock

B. at par stock

C. equal stock

D. debt equity stock