Financial Management MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13

51.
A portfolio which lies below the efficient frontier is described as________________.

A. optimal

B. unattainable

C. dominant

D. dominated

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52.
Offering cash discount to customers result in _______.

A. reducing the average collection period

B. increasing the average collection period

C. increasing sales

D. decreasing sales

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53.
The optimal portfolio is the efficient portfolio with the______________.

A. lowest risk

B. highest risk

C. highest utility

D. least investment

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54.
A higher accounts receivable turnover ratio means__________.

A. lower debt collection period

B. higher debt collection period

C. lower sales

D. higher sales

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55.
Market risk is best measured by the____________.

A. alpha

B. beta

C. standard deviation

D. coefficient of variation

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56.
Good inventory management is good ________ management.

A. financial

B. Marketing

C. stock

D. purchasing

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57.
Non-systematic risk is also known as_____________.

A. riskless

B. market risk

C. random risk

D. company-specific risk

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58.
Setup cost is a type of __________ cost.

A. fixed

B. variable

C. semi variable

D. carrying

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59.
Under the P/E model, stock price is a product of_____________.

A. EPS and DPS

B. P/E ratio and EPS

C. EPS and required return

D. P/E ratio and required return

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60.
The amount of the temporary working capital __________.

A. keeps on fluctuating from time to time

B. remains constant for all times

C. financed through long term services

D. none of the above.

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

51. A portfolio which lies below the efficient frontier is described as________________.

Answer & Solution

52. Offering cash discount to customers result in _______.

Answer & Solution

53. The optimal portfolio is the efficient portfolio with the______________.

Answer & Solution

54. A higher accounts receivable turnover ratio means__________.

Answer & Solution

55. Market risk is best measured by the____________.

Answer & Solution

56. Good inventory management is good ________ management.

Answer & Solution

57. Non-systematic risk is also known as_____________.

Answer & Solution

58. Setup cost is a type of __________ cost.

Answer & Solution

59. Under the P/E model, stock price is a product of_____________.

Answer & Solution

60. The amount of the temporary working capital __________.

Answer & Solution

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51.
A portfolio which lies below the efficient frontier is described as________________.

52.
Offering cash discount to customers result in _______.

53.
The optimal portfolio is the efficient portfolio with the______________.

54.
A higher accounts receivable turnover ratio means__________.

55.
Market risk is best measured by the____________.

56.
Good inventory management is good ________ management.

57.
Non-systematic risk is also known as_____________.

58.
Setup cost is a type of __________ cost.

59.
Under the P/E model, stock price is a product of_____________.

60.
The amount of the temporary working capital __________.