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Name the financial decision which relates to the disposal of profits.

(a) Financing decision (b) Capital budgeting decision (c) Dividend decision (d) Investment decision Answer (c) Dividend decision... View Article

When the stock market is bearish, a company may depend upon ______ in order to raise the required funds.

(a) Debentures (b) Preference shares (c) All of the above (d) Equity shares Answer (a) Debentures Explanation: Debentures are a debt... View Article

When the stock market index is rising, a company may issue _____ in order to meet its financial requirements.

(a) Bonds (b) None of the above (c) Equity shares (d) Debentures Answer (c) Equity shares Explanation: Equity shares are long-term financing... View Article

Which of the following sources of capital should not be selected by a business if its fixed cost is high?

(a) Preference shares (b) All of the above (c) Debentures (d) Equity shares Answer (c) Debentures Explanation: Debentures are a debt... View Article

The _____ decision determines the overall cost of capital and the financial risk of the enterprise.

(a) Capital budgeting decision (b) Investment decision (c) Dividend decision (d) Financing decision Answer (d) Financing decision... View Article

The overall financial risk depends upon the ____.

(a) Proportion of debt in the total capital (b) Both of the above (c) None of the above (d) Proportion of equity in the total capital Answer... View Article

The inability of a business to meet its fixed financial obligations, like payment of interest, is known as _____.

(a) Long-term risk (b) Market risk (c) Long-term risk (d) Business risk Answer (b) Financial risk Explanation: Financial risk is the chance... View Article

This decision is about the quantum of finance to be raised from various long-term sources.

(a) Dividend decision (b) Capital budgeting decision (c) Dividend decision (d) Investment decision Answer (b) Financing decision... View Article

These decisions affect the liquidity as well as the profitability of a business.

(a) Financing decision (b) Dividend decision (c) Working capital decision (d) Capital budgeting decision Answer (c) Working capital decision... View Article

The size of assets, profitability, and competitiveness are all affected by _____.

(a) Financing decision (b) Capital budgeting decision (c) Dividend decision (d) Working capital decision Answer (b) Capital budgeting... View Article

Purchasing a new machine to replace an existing one is an example of _____.

(a) Dividend decision (b) Working capital decision (c) Financing decision (d) Capital budgeting decision Answer (d) Capital budgeting... View Article

The ______ relates to how the firm’s funds are invested in different assets.

(a) Investment decision (b) Dividend decision (c) None of the above (d) Financing decision Answer (a) Investment decision Explanation:... View Article

The primary aim of financial management is to ______.

(a) Wealth maximisation concept (b) Maximisation of the market value of equity shares (c) Maximise shareholder’s wealth (d) All of the... View Article

Financial Management aims at _____.

(a) Keeping the risk under control (b) Achieving effective deployment of such funds (c) Reducing the cost of funds procured (d) All of the... View Article

Which of the following is not a tangible asset?

(a) Factories (b) Trademarks (c) Offices (d) Machinery Answer (b) Trademarks Explanation: An intangible asset is a resource that isn't... View Article

Business finance is needed to _____.

(a) Run a business (b) Expand a business (c) Establish a business (d) All of the above Answer (d) All of the above Explanation: Business... View Article

Reducing the workers’ absenteeism in a factory by 20% is an example of _____.

(a) Quantitative standard (b) Qualitative standard (c) Deviation (d) None of the above Answer (a) Quantitative standard Explanation:... View Article

Controlling is known as a backward-looking function because _____.

(a) It relates to the future course of action. (b) It is like a post-mortem of past activities. (c) To find out deviation, it aims at improving... View Article

The need for the controlling function is felt in ______.

(a) Business organisations (b) Political organisations (c) Social organisations (d) All of the above Answer (d) All of the above... View Article

When the deviations between the actual performance and the planned performance are within the limits, ____________.

(a) A limited corrective action is required. (b) No corrective action is required. (c) A major corrective action is required. (d) None of the... View Article

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