Business Finance MCQ Questions and Solutions with Explanations | Commerce

A. Net Operating Income Approach

B. Net Income Approach

C. Modigliani-Miller Approach

D. Traditional Approach

A. High promotion expenses

B. Liberal dividend policy

C. Both A and B

D. None of the above

A. Rs. 100

B. Rs. 87

C. Rs. 90

D. Rs. 77

A. Optimum capital structure

B. Appropriate capitalization

C. Capital gearing

D. Watered capital

A. No retained earnings are available

B. Limited funds are available for investment

C. No external funds can be raised

D. No fresh investment is required in the current year

A. Day-to-day expenditure of business

B. Current obligations for payment

C. Expenditure in the usual course of business

D. Expenditure to acquire capital

A. Economics of scale

B. Market reach

C. Product differentiation

D. Intangible benefits

A. 1.50

B. 0.67

C. 3.00

D. None of the above

A. $$\frac{{{\text{EBIT}}}}{{{\text{EAT}}}}$$

B. $$\frac{{{\text{EBIT}}}}{{{\text{EBT}}}}$$

C. $$\frac{{{\text{EAIT}}}}{{{\text{EBT}}}}$$

D. $$\frac{{\text{C}}}{{{\text{EBIT}}}}$$

A. Capital expenditure decisions

B. Capital structure decisions

C. Both A and B

D. None of the above