Q.1.
Range of probability distribution with 99.74% lies within
Q.2.
Risk per unit of return or stand alone risk is represented by
Q.3.
Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as
Q.4.
According to probability distribution of rates of return, a close outcome to an expected value is shown by
Q.5.
An amount invested is Rs 4000 and return is Rs 300 then rate of return will be
Q.6.
In capital asset pricing model, stock with high standard deviation tend to have
Q.7.
A range of probability distribution with 95.46% lies within
Explanation
Q.8.
Range of probability distribution with 68.26% lies within
Explanation
Q.9.
What is a savings account?
- A for profit institution that offers personal loans, mortgages and other services.
- A business that provides money related services.
- An interest bearing account where people put money for future use.
- None of the above
Q.10.
Finance functions are
- Planning for funds
- Raising of funds
- Allocation of funds
- All of the above
Q.11.
The primary goal of financial management is
- to maximize the return
- to minimize the risk
- to maximize wealth of owners
- to maximize profit
Q.12.
Which does not belong to the group?
- Property, Plant and Equipment
- Accounts Receivable
- Inventory
- Prepaid Expenses
Q.13.
Market value of shares are decided by
- the respective companies
- the investment market
- the government
- the shareholders
Q.14.
Why is it important to save money?
- Saving for a goal or something special in the future
- Because your parents say so
- So you can spend it faster
- Its not a good idea to save money
Q.15.
The objective of wealth maximization takes into account
- Amount of returns expected
- Timing of anticipated returns
- Risk associated with uncertainty of returns
- All of the above
Q.16.
Investment can be defined.
- Person’s dedication to purchasing a house or flat
- Use of capital on assets to receive returns
- Usage of money on a production process of products and services
- Net additions made to the nation’s capital stocks
Q.17.
Financial management is mainly concerned with
- All aspects of acquiring and utilizing financial resources for firms activities
- Arrangement of funds
- Efficient Management of every business
- Profit maximisation
Q.18.
Mainly general type of Direct Foreign Investment (DFI) is
- Franchising
- Patent
- International trade
- The establishment of new subsidiaries
Q.19.
How old can you be to open a savings or checking account?
- 13 with a guardian
- 20
- 5 with a guardian
- 18 with a guardian
Q.20.
IF THE SALES OF A FIRM IS RS 10,00,AND CONTRIBUTION IS RS 2,00,THEN VARIABLE COSTS ARE
- RS 5,00,000
- RS 8,00,000
- RS 12,00,000
- RS 20,00,000
Q.21.
Financial Planning helps in...
- Managing Business
- Managing Human Resources
- Forecasting Business Situations
- All of the above
Q.22.
IF THE SALES ARE RS 50,00,AND VARIABLE COSTS ARE 30,00,000
- CONTRIBUTION RS 80,00,000
- CONTRIBUTION RS 150,00,000
- CONTRIBUTION RS 15,00,000
- NONE OF THE ABOVE
Q.23.
Break-even point is that level of sales revenue at which there is ________
- Profit
- Loss
- No profit no loss
- None of the above
Q.24.
CALCULATE THE FIXED EXPENSES IF CONTRIBUTION IS RS 15,00,AND EBIT IS RS 10,00,000
- RS 5,00,000
- RS 25,00,000
- RS -(5,00,000)
- NONE OF THE ABOVE
Q.25.
The shareholder's equity of a corporation has three basic components. Which does not belong to the group?
- Accounts Payable
- Share Capital
- Reserves
- Retained Earnings
Q.26.
This is a legal business entity created by the government.
- Sole Proprietorship
- Partnership
- Corporation
- Cooperative
Q.27.
What is mobile banking?
- An electronic way to view account activity and pay bills via the internet and an institution's website.
- A written order for a bank to pay money out of the account holders account.
- A record of income and spending and a plan for managing money.
- A wireless service that allows financial transactions by using an app or web browser from a mobile device.
Q.28.
Cash flows are the money that is available to a business at any given time.
- True
- False
Q.29.
Owner's equity is the owner's claim to the asset of the business. It is NEVER referred to as the owner's capital in the business.
- True
- False
Q.30.
A ______________ is a set of documents that outline the essential financial facts about the new venture.
- financial forecast
- budget
- income statement
- financial plan
Q.31.
What is the formula for Earnings per share (EPS)?
- Net Income/Ordinary Shares
- Net Profit/Shares
- Net Income/Shares
- Net Income/Shares Oustanding
Q.32.
This considered as the oldest, most common, and simplest form of business organization.
- Sole Ownership
- Partnership
- Sole Proprietorship
- Corporation
Q.33.
The summary of the operating, investing and financing activities of the firm is presented in the?
- Statement of Financial Position
- Statement of Retained Earnings
- Statement of Comprehensive Income
- Statement of Cash Flows
Q.34.
Financial Managers are often task to trade the equity securities of the firm in the financial market. What particular activity is this?
- Forecasting & Planning
- Making Crucial Investment & Financing Decisions
- Coordinating & Controlling
- Trading in Financial Markets
Q.35.
Compute the EPS based on the given data below:Shares Outstanding -000Year-end Net income - 750,000
- 7 per share
- 7.50 per share
- 6 per share
- 5 per share
Q.36.
It is considered to be the expansive goal of the firm.
- Valuation Approach
- Maximization of Shareholder's Wealth
- Social Responsibility
- Ethical Behavior
Q.37.
Which of the following assets is not considered as current asset:
- Stock
- Furniture
- Cash
- Goodwill
Q.38.
Which financial decision help a businessman in opening a new branch of its business.
- Financing decision
- Dividend decision
- Investment decision
- None of the above
Q.39.
Worldwide trade is
- Buying goods from abroad
- Selling goods to abroad
- Paying foreign currency
- All of above
Q.40.
Where do you put your signature on a check you just wrote?
- none of them
- Bottom left corner on the line
- Top right corner on the line
- Bottom right corner on the line
Q.41.
Pam needs to take money out of her account from an ATM what card will she use?
- Credit Card
- Sam's Card
- Debit Card
- Macy's Card
Q.42.
What is a credit referring to a checking account?
- Deposit or an addition to the account
- Subtraction or a minus to the account
- What is on your credit report
- When you enter your pin number
Q.43.
FINANCING DECISIONS RELATE TO THE
- DIVIDEND DECISIONS
- ASSETS PROCUREMENT
- RESREVE BUILDING
- ACQUISITION OF CAPITAL
Q.44.
BANK OVERDRAFT IS A FORM OF
- SHORT TERM FUNDS
- LONG TERM FUNDS
- BOTH
- NONE OF THE ABOVE
Q.45.
CAPITAL STRUCTURE DENOTES THE COMPOSITION OF
- SHARE CAPITAL
- LONG TERM AND SHORT TERM DEBTS
- DEBT AND EQUITY
- RESERVES AND SURPLUS
Q.46.
External sources of funds are
- Funds from long term loans
- Sale of fixed assets
- Both (A) and (B)
- None of the above
Q.47.
Which is not a major decision in Financial Management
- Investment Decision
- Operations Decision
- Financing Decision
- Dividend Decision
Q.48.
Which one is source of raising of funds?
- Equity Shares
- Preference Shares
- Debentures
- All of above
Q.49.
Portion of Profit distributed to the shareholder is
- Interest
- Dividend
- Tax
- Earnings
Q.50.
It consists of recognized gains and losses that are not included in the income statement but are found in the equity section
- Income Statement
- Statement of Changes in Equity
- Comprehensive Income
- Statement of Financial Position