Business Finance MCQ Questions and Solutions with Explanations | Commerce

A. revolving capital

B. circulating capital

C. Both A and B

D. None of these

A. If the company allows liberal credit to its customers, high amount would be invested in debtors

B. The needs of working capital for a large business is less than these of a small business

C. Working capital requirement will be high only in seasons

D. None of the above

A. a-4, b-3, c-2, d-1

B. a-2, b-4, c-1, d-3

C. a-2, b-3, c-4, d-1

D. a-1, b-2, c-3, d-4

A. Probability distribution

B. Expected return

C. Standard deviation

D. Coefficient of variation

A. The dividend paid on the equity capital

B. The weighted average of the cost of various longterm and short-term sources of finance

C. The average rate of return it must earn on investments to satisfy the investors

D. The minimum rate of return it must earn on investments to keep its investors satisfied

A. Systematic risk

B. Standard deviation

C. Unsystematic risk

D. Coefficient of variation

A. (i) only

B. (ii) only

C. (ii) and (iii)

D. (i), (ii) and (iii)

A. Fixed Exchange Rate System

B. Floating Exchange Rate System

C. Hybrid of Fixedand Floating Exchange System

D. None of the above

A. Discounting all cash flows to a common point of time

B. Compounding all cash flows to a common point of time

C. Using either A or B

D. None of the above

A. To offer small and large investors the means of acquiring shares in the widening prosperity resulting from the steady industrial growth of the country

B. To upgrade technology modernization and promote the marketing of products of the small-scale sector

C. To serve as the apex institution for term finance for the industry with coordination, regulation, and supervision of the working of other financial institution

D. To provide medium and long-term financial assistance to industrial undertakings, particularly in those circumstances in which banking accommodation is inappropriate or resource to the capital market is impracticable