Financial Management MCQ Questions and Solutions with Explanations | Commerce

Home / Commerce / Financial Management

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

111.
Which of the following assumes constant k_d and k_c?

A. Net Income Approach

B. Net Operating Income Approach

C. Traditional Approach

D. MM Model

Answer & Solution Discuss in Board Save for Later

112.
Combined leverage can be used to measure the relationship between:

A. EBIT and EPS

B. PAT and EPS

C. Sales and EPS

D. Sales and EBIT

Answer & Solution Discuss in Board Save for Later

113.
Feasibility Set Approach to Capital Rationing can be applied in:

A. Accept-reject situations

B. Divisible projects

C. Mutually exclusive projects

D. None of the above

Answer & Solution Discuss in Board Save for Later

114.
Which of the following is not an objective of cash management?

A. Maximization of cash balance

B. Minimization of cash balance

C. Optimization of cash balance

D. Zero cash balance

Answer & Solution Discuss in Board Save for Later

115.
Cost of not carrying sufficient inventory is known as:

A. Carrying Cost

B. Holding Cost

C. Total Cost

D. Stock-out Cost

Answer & Solution Discuss in Board Save for Later

116.
Which of the following is a risk factor in capital budgeting?

A. Industry specific risk factors

B. Competition risk factors

C. Project specific risk factors

D. All of the above

Answer & Solution Discuss in Board Save for Later

117.
In MM-Model, irrelevance of capital structure is based on:

A. Cost of Debt and Equity

B. Arbitrage Process

C. Decreasing k₀

D. All of the above

Answer & Solution Discuss in Board Save for Later

118.
Financial break-even level of EBIT is:

A. Intercept at Y-axis

B. Intercept at X-axis

C. Slope of EBIT-EPS line

D. None of the above

Answer & Solution Discuss in Board Save for Later

119.
Which of the following is not an element of credit policy?

A. Credit Terms

B. Collection Policy

C. Cash Discount Terms

D. Sales Price

Answer & Solution Discuss in Board Save for Later

120.
Real Discount Rate is equal to:

A. (1 + Inf. Rate) (1 + Money D Rate) - 1

B. (1 + Money D Rate) + (1 + Inf. Rate) - 1

C. (1 + Money D Rate) 4 - (1 + Inf. Rate) - 1

D. (1 + Money D Rate) - (1 + Inf. Rate) - 1

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Financial Management MCQ Questions and Solutions with Explanations | Commerce

111. Which of the following assumes constant kd and kc?

Answer & Solution

112. Combined leverage can be used to measure the relationship between:

Answer & Solution

113. Feasibility Set Approach to Capital Rationing can be applied in:

Answer & Solution

114. Which of the following is not an objective of cash management?

Answer & Solution

115. Cost of not carrying sufficient inventory is known as:

Answer & Solution

116. Which of the following is a risk factor in capital budgeting?

Answer & Solution

117. In MM-Model, irrelevance of capital structure is based on:

Answer & Solution

118. Financial break-even level of EBIT is:

Answer & Solution

119. Which of the following is not an element of credit policy?

Answer & Solution

120. Real Discount Rate is equal to:

Answer & Solution

Read More Section(Financial Management)

111.
Which of the following assumes constant k_d and k_c?

112.
Combined leverage can be used to measure the relationship between:

113.
Feasibility Set Approach to Capital Rationing can be applied in:

114.
Which of the following is not an objective of cash management?

115.
Cost of not carrying sufficient inventory is known as:

116.
Which of the following is a risk factor in capital budgeting?

117.
In MM-Model, irrelevance of capital structure is based on:

118.
Financial break-even level of EBIT is:

119.
Which of the following is not an element of credit policy?

120.
Real Discount Rate is equal to: