Top 550+ Solved Financial Management MCQ Questions Answer
Q. Which is the characteristics of share capital
a. Getting permanent capital
b. Payment of dividend is not compulsory
c. No mortgage of property
d. Limited liability
Q. The ownership capital of Joint Stock Companies is dividend in its --------------
a. Equity shares
b. Debentures
c. Bonds
d. Debentures and preference shares
Q. The payment of dividend is not compulsory on ------------------
a. Equity share capital and preference share capital
b. Bonds
c. Debentures
d. Share capital
Q. The capital raised through equity share is ---------- for the company
a. Floating capital
b. Variable capital
c. Temporary capital
d. Permanent or fixed capital
Q. The control and management of the company is in the hands of ----
a. Debenture holders
b. Bondholders
c. Equity shareholders
d. Employees
Q. Who have the last right on the company assets
a. Bondholders
b. Equity shareholders
c. Debenture holders
d. Preference shareholders
Q. The equity shareholders are owners of ---------------------
a. Residual income of the company
b. Cost of asset
c. Limited liability
d. Cost of capital
Q. Which is the advantage of the share capital
a. Permanent capital by sharing risk
b. No fixed burden of dividend by all of these
c. All of these
d. None of these
Q. When the expansion of business and income is there, then the market value increases which result in ------------------
a. Capital gain by capital loss
b. Capital expense
c. Reserves
d. None of these
Q. If the company announces dividend then it is necessary to pay if
a. Within a certain time
b. Within five years
c. Within six years
d. Within seven years
Q. Which ratio explains that how much portion of earning is distributed in the form of dividend
a. Dividend per Share Ratio
b. Pay Out Ratio
c. Earning yield Ratio
d. Equity Capital Ratio
Q. Preference shares are those shares whose holders have -------------
a. Certain common rights
b. Certain preferential Rights
c. Return on capital ownership on shares
d. Return on capital
Q. When preference shareholders have a right to convert their preference shares in to equity shares after a pre-decided dare such shares are called -------- shares.
a. Participating
b. Convertible
c. Redeemable
d. Irredeemable
Q. Which is the element of cumulative convertible preference shares?
a. The rate of dividend will be 10%
b. The rate of dividend is 20%
c. No risk
d. No return
Q. ----------- have veto power to protect their preferential rights
a. Preference shareholder
b. Debenture holders
c. Common preference share
d. Right shares