Top 150+ Solved Working Capital Management MCQ Questions Answer

From 136 to 143 of 143

Q. A lease which is generally not cancellable and covers full economic life of theasset is known as

a. sale and leaseback,

b. operating lease

c. finance lease,

d. economic lease

  • c. finance lease,

Q. Lease which includes a third party (a lender) is known as

a. sale and leaseback

b. direct lease,

c. inverse lease,

d. leveraged lease

  • d. leveraged lease

Q. One difference between Operating and Financial lease is:

a. there is often an option to buy in operating lease

b. there is often a call option in financial lease.

c. an operating lease is generally cancelable by lease

d. a financial lease in generally cancelable by lease.

  • c. an operating lease is generally cancelable by lease

Q. From the point of view of the lessee, a lease is a:

a. working capital decision,

b. financing decision,

c. buy or make decision,

d. investment decision

  • b. financing decision,

Q. For a lesser, a lease is a

a. investment decision,

b. financing decision,

c. dividend decision

d. none of the above.

  • a. investment decision,

Q. Which of the following is not true for a "Lease decision for the lessee?

a. helps in project selection

b. helps in project financing

c. helps in project location

d. all of the above.

  • b. helps in project financing

Q. Risk-Return trade off implies

a. minimization of risk,

b. maximization of risk,

c. ignorance of risk

d. optimization of risk

  • d. optimization of risk

Q. Basic objective of diversification is

a. increasing return,

b. maximising return,

c. decreasing risk,

d. maximizing risk.

  • c. decreasing risk,
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