Business Finance MCQ Questions and Solutions with Explanations | Commerce

A. purchase on open account

B. purchasing on furnishing a promote for specified period

C. purchase on trade acceptance

D. All of the above

A. They are first paid a variable rate of dividend

B. They may be paid surplus profits

C. Their mode of payment of a dividend is never mentioned in the Articles of Association

D. All of the above

A. Liquidity

B. Risk

C. Return

D. Loss

A. Both (A) and (R) are true

B. (A) is true, (R) is a necessary condition, but not a sufficient condition

C. Both (A) and (R) are false

D. Both (A) and (R) are true, and (R) explains the reason sufficiently

A. manufacturing time

B. duration of credit available

C. stock held in stores shares

D. credit period to the customers

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

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

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

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

A. Promoting co-operation among countries on international monetary issues

B. Giving loans to countries for the purpose of economic development

C. Promoting stability in the exchange rates

D. Promoting free mobility of capital across countries

A. All financing is through retained earnings

B. The firm's business risk does not change due to additional investments

C. The firm has an infinite life

D. The key variables like EPS and DPS keep on changing

A. forward contracts usually result in losses

B. forward contracts cannot be turned into cash

C. it may be difficult to make the transaction

D. forward contracts cannot be sold for cash

A. forward transaction

B. spot transaction

C. money transaction

D. exchange transaction