MCQ on Financial Management 2

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Objective Questions and Answers of MBA: MCQ on Financial Management 2

Subject: MCQ on Financial Management 2

Part 2: List for questions and answers of Financial Management

 

Q1. Return on any financial asset consists of capital yield and current yield

a) True

b) False

c) NA

d) NA

 

Q2. There is no difference between the capital market line and security market line as both the terms are same

a) True

b) False

 

Q3. The value of a bond and debenture is

a) Present value of interest payments it gets

b) Present value of contractual payments it gets till maturity

c) Present value of redemption amount

d) None of the above

 

Q4. Required rate of return>Coupon rate, the bond will be valued at

a) Premium

b) Par value

c) Discount

d) None of the above

 

Q5. If the coupon rate is constant, the value of bond when close to maturity will be

a) Issued value

b) Par value

c) Redemption value

d) All of the above

 

Q6. A bond is said to be issued at premium when

a) Coupon rate>Required returns

b) Coupon rate=Required returns

c) Coupon rate

d) None of the above 

 

Q7. Value of a bond just depends on the interest payment is offers

a) True

b) False

c) NA

d) NA

 

Q8. In a variable growth model, the dividend is believed to grow at a constant pace forever after an initial growth period

a) True

b) False

 

Q9. For a bond YTM is always equal to coupon rate

a) True

b) False

 

Q10. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as

a) Accounting ratio

b) Financial ratio

c) Costing ratio

d) None of the above

 

Q11 The definition, “The term accounting ratio is used to describe significant relationship which exist between figures shown in a balance sheet, in a profit and loss account, in a budgetary control system or in a any part of the accounting organization” is given by

a) Biramn and Dribin

b) Lord Keynes

c) J. Betty

d) None of the above

 

Q12. The relationship between two financial variables can be expressed in

a) Pure ratio

b) Percentage

c) Rate or time

d) Either of the above 

 

Q13. Liquidity ratios are expressed in

a) Pure ratio form

b) Percentage

c) Rate or time

d) None of the above

 

Q14. The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgment and thinking, it is worse than useless

a) True

b) False

 

Q15. Profit for the objective of calculating a ratio may be taken as

a) Profit before tax but after interest

b) Profit before interest and tax

c) Profit after interest and tax

d) All of the above

 

Q16. Which of the following falls under Profitability ratios?

A) General Profitability ratios

B) Overall Profitability ratios

C) Comprehensive Profitability ratios

a) A and B

b) A and C

c) B and C

d) None of the above

 

Q17. General Profitability ratios are based on

a) Investments

b) Sales

c) a and B

d) None of the above

 

Q18. Set of persons who build up labour force of a firm, business sector, or nation is

a) human resources

b) finance

c) information technology

d) none of these 

 

Q19. Role usually don

a) pay and reward

b) training and development

c) accounting

d) recruitment and selection

 

Q20. Gross Profit ratio is also termed as

a) Gross Profit Margin

b) Gross Margin to net sales

c) Both a and b

d) All of the above

 

Part 2: List for questions and answers of Financial Management

 

Q1. Answer: a

Q2. Answer: b

Q3. Answer: b

Q4. Answer: c

Q5. Answer: c

Q6. Answer: a

Q7. Answer: b

Q8. Answer: a

Q9. Answer: b

Q10. Answer: a

Q11. Answer: c

Q12. Answer: d

Q13. Answer: a

Q14. Answer: a

Q15. Answer: d

Q16. Answer: a

Q17. Answer: b

Q18. Answer: a

Q19. Answer:

Q20. Answer: c