MBA FINANCE D.

The dollars profits earned by the firm

8. _______________ refers to a firm holding some
Tick the Correct Option cash to meet its routine expenses that are
incurred in the ordinary course of business.
1. The return which the company pays on borrowed A. Speculative motive
funds is termed as B. Transaction motive
A. Dividend C. Precautionary motive
B. Interest D. Compensating motive
C. Bonus 9. XYZ is an oil based business company, which
D. All of the above does not have adequate working capital. It fails
2. Current assets are also referred to as to meet its current obligation, which leads to
A. Working capital bankruptcy. Identify the type of decision
B. Investments involved to prevent risk of bankruptcy.
C. Inventory A. Investment decision
D. Livestock B. Dividend decision
3. The assets held by a business which can be C. Liquidity decision
converted in the form of cash, without disturbing D. Finance decision
the normal operations of a business. 10. Financial instruments with maturities of less than
A. Tangible assets one year are traded in the
B. Intangible assets A. Equity market
C. Fixed assets B. Capital market.
D. Current assets C. Money market.
4. "Shareholder wealth" in a firm is represented by: D. Fixed-income market.
A. The number of people employed in the firm. 11. Which of the following is not a regulatory
B. The book value of the firm's assets less the institution in Indian financial system?
book value of its liabilities A. RBI
C. The amount of salary paid to its employees. B. CIBIL
D. The market price per share of the firm's C. SEBI
common stock. D. IRDA
5. The long run objective of financial management 12. ___________ is regarded as a queen of Indian
is to: financial system.
A. Maximize earnings per share A. SEBI
B. Maximize the value of the firm's common B. RBI
stock C. Finance Ministry
C. Maximize return on investment D. BSE
D. Maximize market share 13. RBI is the lender of last resort for
6. The market price of a share of common stock is A. Central Government
determined by: B. State Governments
A. The board of directors of the firm C. Stock markets
B. The stock exchange on which the stock is D. Commercial Banks
listed 14. Which of the following is a financial asset
C. The president of the company A. Gold
D. Individuals buying and selling the stock B. Silver
7. The focal point of financial management in a C. Share
firm is: D. Land
A. The number and types of products or 15. Which of the following is a cash asset?
services provided by the firm. A. Deposit created out of loans
B. The minimization of the amount of taxes paid B. Share
by the firm. C. Bond
C. The creation of value for shareholders. D. Post office certificate
16. Right shares are offered to..................... 25. ESOP stands for
A. Debenture holders A. Equity share option Plan
B. Existing shareholders B. Equity shares Option premium
C. List 2 contributories C. Employee stock Option Plan
D. Liquidators D. Equity Stock Option Plan
17. ..................... is the suitable method where small
companies issue shares
A. Public
B. Issue
C. Placement
D. Offer for sale
E. None of these
18. ..................... issues does not bring in any fresh
capital
A. Equity
B. Preference
C. Debenture
D. Bonus
19. Prospectus is not issued in
A. Public issue
B. Private placement
C. Right issue
D. None the above
20. An issuer need not file an offer document in case
of
A. Public issue
B. Preferential allotment
C. Right issue
D. Bought out deal
21. Which of the following is a fee based service
A. Hire purchase
B. Leasing
C. Capital issue management
D. Underwriting
22. In India, the company which actually deals with
the corpus of the mutual fund is called
A. Sponsor company
B. Trustee company
C. Asset management company
D. Mutual Fund Company
23. Gold is a
A. Financial asset
B. Non-financial asset
C. Fictitious asset
D. Intangible asset
24. _________is also known as “G.Secs”
A. Gold Traded Fund (GTF)
B. General Securities
C. Govt. Securities
D. Growth oriented fund