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Quiz 21
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Q.1
Range of probability distribution with 99.74% lies within
(+ 3σ and -3σ)
(+ 4σ and -4σ)
(+ 1σ and -1σ)
(+ 2σ and -2σ)
Q.2
Risk per unit of return or stand alone risk is represented by
coefficient of standard
coefficient of return
coefficient of variation
coefficient of deviation
Q.3
Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as
stock risk
portfolio risk
diversifiable risk
market risk
Q.4
According to probability distribution of rates of return, a close outcome to an expected value is shown by
value distribution
expected distribution
more peaked distribution
less peaked distribution
Q.5
An amount invested is Rs 4000 and return is Rs 300 then rate of return will be
4.30%
3.70%
7.50%
0.08%
Q.6
In capital asset pricing model, stock with high standard deviation tend to have
low variation
low beta
high beta
high variation
Q.7
A range of probability distribution with 95.46% lies within
(+ 1σ and -1σ)
(+ 2σ and -2σ)
(+ 3σ and -3σ)
(+ 4σ and -4σ)
Q.8
Range of probability distribution with 68.26% lies within
(+ 3σ and -3σ)
(+ 4σ and -4σ)
(+ 1σ and -1σ)
(+ 2σ and -2σ)
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
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