Top 550+ Solved Financial Management MCQ Questions Answer
Q. _____________ refers to the price at which an asset can be traded in the market
a. past value
b. face value
c. market value
d. future value
Q. __________ is a blending of two or more exisiting undertaking into one undertaking
a. partnership
b. joint stock company
c. joint venture
d. amalgamation
Q. _____________ Means the action of an organisation or government selling or liquidating an asset or subsidiary
a. sale out
b. disinvestment
c. lock out
d. wind up
Q. _________The lessee and the owner of the equipment are two different entities
a. direct lease
b. financial lease
c. operating lease
d. net lease
Q. ___________ is the primary institutional source of working capital finance in India
a. debtors
b. loan from friend
c. bank credit
d. creditors
Q. __________ means reputation of a firm which is in existance for a number of year in market
a. goodwill
b. bad debts
c. copy rights
d. royalties
Q. ___________ involves mergers and acquisition of firm belonging to differernt countries of the world.
a. credit merger
b. group merger
c. cross bordor merger
d. synergy merger
Q. _______________Is a entity formed by two or more companies to undertake financial activity together.
a. parntership firm
b. acquisition
c. joint venture
d. merger
Q. In a __________ transaction the goods are let on hire the purchase price is to be paid in installment and hirer is allowed an option to purchase the goods by paying all the installment
a. hire purchase
b. credit purchase
c. lease purchase
d. installment purchase
Q. The arrengement in which entire amount of borrowing is credited to the current account of the borrower or realised in cash is called as_________
a. letter of credit
b. bank overdraft
c. loan
d. bill discounting
Q. Book value ( Net assets )= Total Assets - _______________
a. total liability
b. current asset
c. long term debt
d. current liability
Q. ____________ synergy refers to increase in the value of the firm that occurs to the combined firm from financial factors.
a. group
b. vertical
c. financial
d. operating
Q. The kind of takeover which is done through negotiations between two groups is called_________
a. horizontal merger
b. hostile take over
c. friendly take over
d. vertical synergy
Q. From the point of view lessee, a lease is a_________
a. financing decision
b. buy or make decision
c. working capital decision
d. investment decision
Q. ____________ indirect form of working capital financing and bank assume only the risk the credit being provided by the supplier himself
a. mortgage loan
b. letter of credit
c. bank overdraft
d. cash credit