Mgt201 Online Quiz
Sunday, September 12, 2010 Posted In MGT Edit This
Question # 1 of 15 ( Start time: 09:14:05 PM ) Total Marks: 1
When the bond approaches its maturity, the market value of the bond approaches to which of the following?
Select correct option:
Intrinsic value
Book value
Par value (Correct)
Historic cost
Question # 2 of 15 ( Start time: 09:14:35 PM ) Total Marks: 1
Which of the following refers to the risk associated with interest rate uncertainty?
Select correct option:
Default risk premium (Correct)
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Question # 3 of 15 ( Start time: 09:15:38 PM ) Total Marks: 1
When the zero coupon bond approaches to its maturity, the market value of the bond approaches to which of the following?
Select correct option:
Intrinsic value
Book value (Correct)
Par value
Historic cost
Question # 4 of 15 ( Start time: 09:17:00 PM ) Total Marks: 1
What is difference between shares and bonds?
Select correct option:
Bonds are representing ownership whereas shares are not
Shares are representing ownership whereas bonds are not (Correct)
Shares and bonds both represent equity
Shares and bond both represent liabilities
mc090401219: Question # 5 of 15 ( Start time: 09:18:04 PM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding (Correct)
Periodic interest rate ignores the effect of inflation
All of the given options
Question # 6 of 15 ( Start time: 09:18:48 PM ) Total Marks: 1
Which of the following refers to a highly competitive market where good business ideas are taken up immediately?
Select correct option:
Capital market
Efficient market (Correct)
Money market
Real asset market
Question # 7 of 15 ( Start time: 09:20:10 PM ) Total Marks: 1
A technique that tells us the number of years required to recover our initial cash investment based on the project’s expected cash flows is:
Select correct option:
Pay back period (Correct)
Internal rate of return
Net present value
Profitability index
Question # 8 of 15 ( Start time: 09:21:01 PM ) Total Marks: 1
Which of the following can not be the drawback of using payback period technique of capital budgeting?
Select correct option:
It does not account for time value of money (Correct)
It neglects cash flows after the payback period
It does not use interest rate while making calculations
It is a tricky and complicated method
Question # 9 of 15 ( Start time: 09:22:03 PM ) Total Marks: 1
Which of the following allows to graphically depicting the timing of the cash flows as well as their nature as either inflows or outflows?
Select correct option:
Cash flow diagram (Correct)
Cash budget
Cash flow statement
None of the given options
Question # 10 of 15 ( Start time: 09:22:45 PM ) Total Marks: 1
Which of the following statements is TRUE regarding Permanent Accounts?
Select correct option:
Accounts that are found on Income Statement
Accounts that are found on Statement of Retained Earnings
Accounts that are found on Balance Sheet
All of the given options
Question # 11 of 15 ( Start time: 09:24:06 PM ) Total Marks: 1
The statement of cash flows reports a firm's cash flows segregated into which of the following categorical order?
Select correct option:
Operating, investing, and financing
Investing, operating, and financing (Correct)
Financing, operating and investing
Financing, investing, and operating
Question # 12 of 15 ( Start time: 09:25:15 PM ) Total Marks: 1
Which of the following needs to be excluded while we calculate the incremental cash flows?
Select correct option:
Depreciation
Sunk cost (Correct)
Opportunity cost
Non-cash item
Question # 13 of 15 ( Start time: 09:26:33 PM ) Total Marks: 1
Which of the following is a capital budgeting technique that is NOT considered as discounted cash flow method?
Select correct option:
Payback period (Correct)
Internal rate of return
Net present value
Profitability index
Question # 14 of 15 ( Start time: 09:27:40 PM ) Total Marks: 1
The value of a bond is directly derived from which of the following?
Select correct option:
Cash flows
Coupon receipts (Correct)
Par recovery at maturity
All of the given options
Question # 14 of 15 ( Start time: 09:27:40 PM ) Total Marks: 1
The value of a bond is directly derived from which of the following?
Select correct option:
Cash flows
Coupon receipts (Correct)
Par recovery at maturity
All of the given options
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Question # 1 of 15 ( Start time: 09:32:06 PM ) Total Marks: 1
A technique that tells us the number of years required to recover our initial cash investment based on the project’s expected cash flows is:
Select correct option:
Pay back period (Correct)
Internal rate of return
Net present value
Profitability index
Question # 2 of 15 ( Start time: 09:33:11 PM ) Total Marks: 1
Which of the following is NOT an example of a financial intermediary?
Select correct option:
Wisconsin S&L, a savings and loan association
Strong Capital Appreciation, a mutual fund
Microsoft Corporation, a software firm (Correct)
College Credit, a credit union
Question # 3 of 15 ( Start time: 09:33:49 PM ) Total Marks: 1
When a bond will sell at a discount?
Select correct option:
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
The coupon rate is greater than yield to maturity
The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
The coupon rate is less than the current yield and the current yield is less than yield to maturity (Correct)
Question # 4 of 15 ( Start time: 09:34:34 PM ) Total Marks: 1
When bonds are issued, under which of the following category the value of the bond appears?
Select correct option:
Equity
Fixed assets
Short term loan
Long term loan (Correct)
Question # 5 of 15 ( Start time: 09:35:06 PM ) Total Marks: 1
Which of the following can not be the drawback of using payback period technique of capital budgeting?
Select correct option:
It does not account for time value of money
It neglects cash flows after the payback period
It does not use interest rate while making calculations
It is a tricky and complicated method (Correct)
Question # 6 of 15 ( Start time: 09:35:46 PM ) Total Marks: 1
An investment proposal should be judged in whether or not it provides:
Select correct option:
A return equal to the return require by the investor
A return more than required by investor (Correct)
A return less than required by investor
A return equal to or more than required by investor
Question # 7 of 15 ( Start time: 09:36:51 PM ) Total Marks: 1
Which of the following is a major disadvantage of the corporate form of organization?
Select correct option:
Double taxation of dividends (Correct)
Inability of the firm to raise large sums of additional capital
Limited liability of shareholders
Limited life of the corporate form
Question # 8 of 15 ( Start time: 09:37:49 PM ) Total Marks: 1
Which of the following is NOT an example of hybrid equity
Select correct option:
Convertible Bonds
Convertible Debenture
Common shares (Correct)
Preferred shares
Question # 9 of 15 ( Start time: 09:38:55 PM ) Total Marks: 1
Which of the following is/are the component(s) of working capital management?
Select correct option:
Current assets (Correct)
Fixed assets
Fixed assets and long-term liabilities
Current assets and current liabilities
Question # 10 of 15 ( Start time: 09:40:18 PM ) Total Marks: 1
Which of the following statements (in general) is correct?
Select correct option:
A low receivables turnover is desirable
The lower the total debt-to-equity ratio, the lower the financial risk for a firm (Correct)
An increase in net profit margin with no change in sales or assets means a weaker ROI
The higher the tax rate for a firm, the lower the interest coverage ratio
Question # 11 of 15 ( Start time: 09:41:43 PM ) Total Marks: 1
What should be the focal point of financial management in a firm?
Select correct option:
The number and types of products or services provided by the firm
The minimization of the amount of taxes paid by the firm
The creation of value for shareholders
The dollars profits earned by the firm(Correct)
Question # 12 of 15 ( Start time: 09:42:43 PM ) Total Marks: 1
With continuous compounding at 8 percent for 20 years, what is the approximate future value of a Rs. 20,000 initial investment?
Select correct option:
Rs.52,000
Rs.93,219 (Correct)
Rs.99,061
Rs.915,240
Question # 13 of 15 ( Start time: 09:43:14 PM ) Total Marks: 1
Who or what is a person or institution designated by a bond issuer as the official representative of the bondholders?
Select correct option:
Indenture
Debenture
Bond
Bond trustee (Correct)
Question # 14 of 15 ( Start time: 09:44:04 PM ) Total Marks: 1
Which of the following is FALSE about Perpetuity?
Select correct option:
It is a series of cash flows
Cash flows occur for a specific time period
Its cash flows are identical (Correct)
None of the given options
Question # 15 of 15 ( Start time: 09:45:14 PM ) Total Marks: 1
Which of the following refers to bringing the future cash flow to the present time?
Select correct option:
Net present value
Discounting (Correct)
Opportunity cost
Internal rate of return
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Question # 1 of 15 ( Start time: 09:49:12 PM ) Total Marks: 1
Given no change in required returns, the price of a stock whose dividend is constant will________.
Select correct option:
Decrease over time at a rate of r%
Remain unchanged (Correct)
Increase over time at a rate of r%
Decrease over time at a rate equal to the dividend growth rate
Question # 2 of 15 ( Start time: 09:50:02 PM ) Total Marks: 1
Which of the following refers to a highly competitive market where good business ideas are taken up immediately?
Select correct option:
Capital market
Efficient market (Correct)
Money market
Real asset market
Virtual: 2
zahid.famous: 2
saadkhan545: Question # 3 of 15 ( Start time: 09:50:40 PM ) Total Marks: 1
Which of the following is the Double Entry Principle?
Select correct option:
Assets + Liabilities = Shareholders’ Equity
Assets = Liabilities + Shareholders’ Equity
Liabilities = Assets + Shareholders’ Equity (Correct)
None of the given options
Question # 4 of 15 ( Start time: 09:51:21 PM ) Total Marks: 1
Which of the following equation is NOT correct?
Select correct option:
Gross Revenue – Admin & Operating Expenses = Operating Revenue
Other Expenses + Other Revenue = EBIT (Correct)
EBIT – Financial Charges & Interest = EBT
Net Income – Dividends = Retained Earning
Question # 5 of 15 ( Start time: 09:52:38 PM ) Total Marks: 1
With continuous compounding at 8 percent for 20 years, what is the approximate future value of a Rs. 20,000 initial investment?
Select correct option:
Rs.52,000
Rs.93,219 (Correct)
Rs.99,061
Rs.915,240
5:53 PM
Question # 6 of 15 ( Start time: 09:54:01 PM ) Total Marks: 1
To increase a given future value, the discount rate should be adjusted ________.
Select correct option:
Upward
Downward (Correct)
First upward and then downward
None of the given options
Question # 7 of 15 ( Start time: 09:55:36 PM ) Total Marks: 1
Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation?
Select correct option:
Par value
Market value (Correct)
Intrinsic value
Face value
Question # 8 of 15 ( Start time: 09:57:06 PM ) Total Marks: 1
Which of the following refers to time value of money concept?
Select correct option:
A rupee in one’s hand at present is worth less than the rupee that one is going to receive tomorrow (Correct)
A rupee in one’s hand at present is worth more than the rupee that one is going to receive tomorrow
A rupee in one’s hand at present is worth same as the rupee that one is going to receive tomorrow
All of the given options
Question # 9 of 15 ( Start time: 09:57:59 PM ) Total Marks: 1
Which of the following is NOT true regarding an ordinary annuity?
Select correct option:
It is a series of equal cash flows
Cash flows occur for a specific time period (Correct)
Payments are made at the start of each period
It is also known as deferred annuity
Question # 10 of 15 ( Start time: 09:58:47 PM ) Total Marks: 1
Which of the following includes the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization?
Select correct option:
Financial accounting
Financial management (Correct)
Financial engineering
Financial budgeting
5:59 PM
Question # 11 of 15 ( Start time: 09:59:08 PM ) Total Marks: 1
Which of the following is FALSE about Perpetuity?
Select correct option:
It is a series of cash flows
Cash flows occur for a specific time period
Its cash flows are identical (Correct)
None of the given options
Question # 12 of 15 ( Start time: 10:00:31 PM ) Total Marks: 1
Which of the following term may be defined as incidental cash flows that arise because of the effect of new project on the running business?
Select correct option:
Sunk cost
Opportunity cost
Externalities (Correct)
Contingencies
Question # 13 of 15 ( Start time: 10:01:09 PM ) Total Marks: 1
What is the present value of Rs. 3,500,000 to be paid at the end of 50 years if the correct risk adjusted interest rate is 18%?
Select correct option:
Rs.105,000
Rs.1,500,000
Rs.3975,000
Rs. 350,000
saadkhan545: Question # 14 of 15 ( Start time: 10:02:19 PM ) Total Marks: 1
Which if the following refers to capital budgeting?
Select correct option:
Investment in long-term liabilities (Correct)
Investment in fixed assets
Investment in current assets
Investment in short-term liabilities
Question # 15 of 15 ( Start time: 10:03:16 PM ) Total Marks: 1
An annuity due is always worth ___ a comparable annuity.
Select correct option:
Less than
More than (Correct)
Equal to
Can not be found from the given information
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Question # 1 of 15 ( Start time: 10:22:47 PM ) Total Marks: 1
The statement of cash flows reports a firm's cash flows segregated into which of the following categorical order?
Select correct option:
Operating, investing, and financing
Investing, operating, and financing (Correct)
Financing, operating and investing
Financing, investing, and operating
Question # 2 of 15 ( Start time: 10:23:52 PM ) Total Marks: 1
When a bond will sell at a discount?
Select correct option:
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
The coupon rate is greater than yield to maturity
The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
The coupon rate is less than the current yield and the current yield is less than yield to maturity (Correct)
Question # 3 of 15 ( Start time: 10:24:25 PM ) Total Marks: 1
If Net Present Value technique is used, what is the minimum acceptance criterion for a project?
Select correct option:
NPV<0
NPV=0
NPV>0
NPV<=0 (Correct)
Question # 4 of 15 ( Start time: 10:25:44 PM ) Total Marks: 1
Which if the following refers to capital budgeting?
Select correct option:
Investment in long-term liabilities
Investment in fixed assets (Correct)
Investment in current assets
Investment in short-term liabilities
Question # 5 of 15 ( Start time: 10:26:13 PM ) Total Marks: 1
Which of the following is FALSE about Perpetuity?
Select correct option:
It is a series of cash flows
Cash flows occur for a specific time period
Its cash flows are identical (Correct)
None of the given options
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Question # 1 of 15 ( Start time: 10:37:35 PM ) Total Marks: 1
What are the three classes of factors that influence perception?
Select correct option:
Factors in the setting, factors in the environment and factors in the motives
Factors in the perceiver, factors in the target and factors in the situation
Factors in the character, factors in knowledge and factors in experience
Factors in the personality, factors in the character and factors in the values
Question # 6 of 15 ( Start time: 10:39:02 PM ) Total Marks: 1
Characteristics such as age, gender and marital status are known as _______________
Select correct option:
Psychographic characteristics
Biographical characteristics
Geographical characteristics
Behavioral characteristics
Question # 2 of 15 ( Start time: 10:39:05 PM ) Total Marks: 1
What is the term used for a general impression about an individual based on a single characteristic such as intelligence, sociability, or appearance?
Select correct option:
The contrast effect
Personal bias
The halo effect (Correct)
Projection
Question # 3 of 15 ( Start time: 10:40:25 PM ) Total Marks: 1
Ability to understand what is read or heard and the relationship of words to each other is called ___________
Select correct option:
Verbal comprehension (Correct)
Non verbal comprehension
Perceptual speed
Memory
Question # 8 of 15 ( Start time: 10:40:50 PM ) Total Marks: 1
Which of the following is true of people with a Type A personality?
Select correct option:
They are generally content with their place in the world
They generally feel little need to discuss their achievements
They are easy going and relaxed that’s why take no tension of work
They have an intense desire to achieve and are extremely competitive (Correct)
Question # 4 of 15 ( Start time: 10:41:19 PM ) Total Marks: 1
A person or ***** with a direct interest, involvement, or investment in organization is called ____________.
Select correct option:
Shareholder (Correct)
Stakeholder
Stockholder
Patron
Question # 5 of 15 ( Start time: 10:42:18 PM ) Total Marks: 1
If a person responds the same way over time, attribution theory states that the behavior shows:
Select correct option:
Distinctiveness
Consensus
Consistency (Correct)
Continuity
Question # 6 of 15 ( Start time: 10:43:45 PM ) Total Marks: 1
_________ focuses on the study of people in relation to their social environment.
Select correct option:
Psychology
Sociology (Correct)
Corporate strategy
Political science
Question # 7 of 15 ( Start time: 10:45:13 PM ) Total Marks: 1
Which of the following term is used to describe broad range of feelings that people experience?
Select correct option:
Mood (Correct)
Affect
Emotion
Emotional Intelligence
Question # 8 of 15 ( Start time: 10:46:41 PM ) Total Marks: 1
Hanif is dissatisfied with his job but believes that his supervisor is a good man who will do the right thing. Hanif has decided that if he just waits, conditions will improve. Henry’s approach to this problem is termed as:
Select correct option:
Exit
Voice
Loyalty
Neglect (Correct)
Question # 9 of 15 ( Start time: 10:48:11 PM ) Total Marks: 1
Job satisfaction is best described as __________.
Select correct option:
A result
A value
An attitude (Correct)
A discipline
Question # 10 of 15 ( Start time: 10:49:37 PM ) Total Marks: 1
Which of the following theory is proposed by Clayton Alderfer?
Select correct option:
Theory X and Theory Y
Hierarchy of Needs
ERG Theory (Correct)
Theory Z
Question # 11 of 15 ( Start time: 10:50:24 PM ) Total Marks: 1
Robert Katz identified three essential skills that managers need to have in order to reach their goals. What are these skills?
Select correct option:
Technical, decisional and interpersonal (Correct)
Technical, human, and conceptual
Interpersonal, informational and decisional
Conceptual, communication and networking
Question # 12 of 15 ( Start time: 10:51:47 PM ) Total Marks: 1
One of the shortcuts used to judge others involves evaluating a person based on how he/she compares to other individuals on the same characteristic. What is this shortcut called?
Select correct option:
Selective perception
The contrast effect
The halo effect (Correct)
Stereotyping
Question # 13 of 15 ( Start time: 10:52:24 PM ) Total Marks: 1
Which of the following factors make it imperative that organizations be fast and flexible?
Select correct option:
Temporariness
Corporate excess
Advances in corporate strategy
Globalization
Question # 14 of 15 ( Start time: 10:53:58 PM ) Total Marks: 1
When Job satisfaction is increased, absenteeism tends to:
Select correct option:
Increase
Decrease
Have no effect
None of the above
Question # 15 of 15 ( Start time: 10:54:48 PM ) Total Marks: 1
Difficulty in expressing emotions by an individual and understanding other's emotions is termed as:
Select correct option:
Anemia
Thalassemia
Alexithymia
Myopia
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Question # 1 of 15 ( Start time: 10:58:08 PM ) Total Marks: 1
What is the present value of Rs.8,000 to be paid at the end of three years if interest rate is 11%?
Select correct option:
Rs.6,015
Rs.4,872
Rs.6,725
Rs.1,842
6:59 PM
Question # 3 of 15 ( Start time: 11:00:17 PM ) Total Marks: 1
The logic behind _______ is that instead of looking at net cash flows you look at cash inflows and outflows separately for each point in time.
Select correct option:
IRR
MIRR (Correct)
PV
NPV
Question # 5 of 15 ( Start time: 11:02:10 PM ) Total Marks: 1
_______ is equal to (common shareholders' equity/common shares outstanding).
Select correct option:
Book value per share
Liquidation value per share (Correct)
Market value per share
None of the above
Question # 7 of 15 ( Start time: 11:03:42 PM ) Total Marks: 1
Discounted cash flow methods provide a more objective basis for evaluating and selecting an investment project. These methods take into account:
Select correct option:
Magnitude of expected cash flows
Timing of expected cash flows
Both timing and magnitude of cash flows
None of the given options
Question # 7 of 15 ( Start time: 11:03:42 PM ) Total Marks: 1
Discounted cash flow methods provide a more objective basis for evaluating and selecting an investment project. These methods take into account:
Select correct option:
Magnitude of expected cash flows
Timing of expected cash flows
Both timing and magnitude of cash flows
None of the given options
Question # 8 of 15 ( Start time: 11:04:28 PM ) Total Marks: 1
Which of the following allows to graphically depicting the timing of the cash flows as well as their nature as either inflows or outflows?
Select correct option:
Cash flow diagram
Cash budget
Cash flow statement
None of the given options (Correct)
Question # 9 of 15 ( Start time: 11:05:08 PM ) Total Marks: 1
Which of the following is/are the characteristic(s) of Perpetuity?
Select correct option:
It is an annuity
It has no definite end (Correct)
It is a constant stream of identical cash flows
All of the given options
Question # 10 of 15 ( Start time: 11:06:02 PM ) Total Marks: 1
What type of long-term financing most likely has the following features: 1) it has an infinite life, 2) it pays dividends, and 3) its cash flows are expected to be a constant annuity stream?
Select correct option:
Long-term debt
Preferred stock
Common stock
None of the given options (Correct)
Question # 11 of 15 ( Start time: 11:06:58 PM ) Total Marks: 1
What is the most important criteria in capital budgeting?
Select correct option:
Return on investment
Profitability index (Correct)
Net present value
Pay back period
mehak: Question # 12 of 15 ( Start time: 11:08:07 PM ) Total Marks: 1
What is the additional amount a borrower must pay to lender to compensate for assuming the risk associated with non-payment?
Select correct option:
Default risk premium
Sovereign Risk Premium (Correct)
Market risk premium
Maturity risk premium
Question # 13 of 15 ( Start time: 11:08:46 PM ) Total Marks: 1
What is the present value of Rs.1,000 to be paid at the end of 5 years if the correct risk adjusted interest rate is 8%?
Select correct option:
Rs.714
Rs.1,462
Rs.322.69
Rs.401.98
Question # 14 of 15 ( Start time: 11:10:09 PM ) Total Marks: 1
______ are also known as Spontaneous Financing.
Select correct option:
Current liabilities
Current assets (Correct)
Fixed assets
Long-term liabilities
Question # 15 of 15 ( Start time: 11:11:06 PM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding (Correct)
Periodic interest rate ignores the effect of inflation
All of the given options
Question # 1 of 15 ( Start time: 06:55:34 PM ) Total Marks: 1
What is yield to maturity on a bond?
Select correct option:
Below the coupon rate when the bond sells at a discount, and equal to the coupon rate when the bond sells at a premium
The discount rate that will set the present value of the payments equal to the bond price
Based on the assumption that any payments received are reinvested at the coupon rate
None of the above
Question # 2 of 15 ( Start time: 06:56:42 PM ) Total Marks: 1
According to timing difference problem a good project might suffer from _____ IRR even though its NPV is ________.
Select correct option:
Higher; lower
Lower; Lower
Lower; higher
Higher; higher
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 3 of 15 ( Start time: 06:57:21 PM ) Total Marks: 1
For Company A, plow back ratio is 30%. What will be its Pay-out ratio?
Select correct option:
3.33%
30%
31%
70%
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 4 of 15 ( Start time: 06:58:21 PM ) Total Marks: 1
The value of a bond is directly derived from which of the following?
Select correct option:
Cash flows
Coupon receipts
Par recovery at maturity
All of the given options
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 5 of 15 ( Start time: 06:58:48 PM ) Total Marks: 1
________ is paid by companies with lower grade bonds like CC or C ratings.
Select correct option:
Default risk premium
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 6 of 15 ( Start time: 07:00:18 PM ) Total Marks: 1
If Net Present Value technique is used, what is the ranking criterion for projects?
Select correct option:
Choose the highest NPV
Choose the lowest NPV
Choose the project with longest term
Choose the project with shortest term
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 7 of 15 ( Start time: 07:00:45 PM ) Total Marks: 1
Which of the following is a capital budgeting technique that is NOT considered as discounted cash flow method?
Select correct option:
Payback period
Internal rate of return
Net present value
Profitability index
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 8 of 15 ( Start time: 07:01:58 PM ) Total Marks: 1
The current yield on a bond is equal to ________.
Select correct option:
Annual interest divided by the current market price
The yield to maturity
Annual interest divided by the par value
The internal rate of return
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 9 of 15 ( Start time: 07:03:22 PM ) Total Marks: 1
Which of the following is likely to be correct for a company which invests in projects with Positive NPV?
Select correct option:
Company’s EVA (Economic Value Added) rises by the same value
Company’s MVA (Market Value Added) or market value rises
Company Shareholders’ Wealth rises
All of the given options
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 10 of 15 ( Start time: 07:04:03 PM ) Total Marks: 1
Which of the following is NOT true regarding an annuity due?
Select correct option:
It is a series of equal cash flows
It is also known as deferred annuity
Cash flows occur for a specific time period
Payments are made at the start of each period
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 11 of 15 ( Start time: 07:05:15 PM ) Total Marks: 1
Which of the following is type a Temporary Account?
Select correct option:
Asset
Liability
Reserves
Revenue
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 12 of 15 ( Start time: 07:06:35 PM ) Total Marks: 1
If we were to increase ABC company cost of equity assumption, what would we expect to happen to the present value of all future cash flows?
Select correct option:
An increase
A decrease
No change
Incomplete information
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 13 of 15 ( Start time: 07:07:47 PM ) Total Marks: 1
Which of the following refers to the risk associated with interest rate uncertainty?
Select correct option:
Default risk premium
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Quiz Start Time: 06:55 PM Time Left 88
sec(s)
Question # 14 of 15 ( Start time: 07:08:32 PM ) Total Marks: 1
Which of the following statements (in general) is correct?
Select correct option:
A low receivables turnover is desirable
The lower the total debt-to-equity ratio, the lower the financial risk for a firm
An increase in net profit margin with no change in sales or assets means a weaker ROI
The higher the tax rate for a firm, the lower the interest coverage ratio
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 15 of 15 ( Start time: 07:09:07 PM ) Total Marks: 1
With continuous compounding at 8 percent for 20 years, what is the approximate future value of a Rs. 20,000 initial investment?
Select correct option:
Rs.52,000
Rs.93,219
Rs.99,061
Rs.915,240
Quiz Start Time: 05:31 PM
Time Left 38
sec(s)
Question # 1 of 15 ( Start time: 05:31:55 PM ) Total Marks: 1
Which of the following is the general assumption of Percent of Sales Forecasting?
Select correct option:
Current Assets usually grow in proportion to Revenues
Current Assets usually grow in proportion to Expenses
Current Assets usually grow in proportion to Liabilities
Current Assets usually grow in proportion to Sales
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 2 of 15 ( Start time: 05:33:20 PM ) Total Marks: 1
In 2 years you are to receive Rs.10,000. If the interest rate were to suddenly decrease, the present value of that future amount to you would __________.
Select correct option:
Fall
Rise
Remain unchanged
Incomplete information
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 3 of 15 ( Start time: 05:33:59 PM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding
Periodic interest rate ignores the effect of inflation
All of the given options
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 4 of 15 ( Start time: 05:35:22 PM ) Total Marks: 1
What is a legal agreement, also called the deed of trust, between the corporation issuing bonds and the bondholders that establish the terms of the bond issue?
Select correct option:
Indenture
Debenture
Bond
Bond trustee
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 5 of 15 ( Start time: 05:36:28 PM ) Total Marks: 1
All of the following are the reasons for Uncertain NPV calculations EXCEPT:
Select correct option:
Estimated discount rate does not change with the markets
Estimated Life of project is doubtful
Annual after-tax cash flows are difficult to estimate
Timing of cash flows is not exactly predictable
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 6 of 15 ( Start time: 05:37:36 PM ) Total Marks: 1
Which of the following would generally have unlimited liability?
Select correct option:
A limited partner in a partnership
A shareholder in a corporation
The owner of a sole proprietorship
A member in a limited liability company (LLC)
Quiz Start Time: 05:31 PM
Time Left 88
sec(s)
Question # 7 of 15 ( Start time: 05:38:38 PM ) Total Marks: 1
Why we need Capital rationing? (
Select correct option:
Because, there are not enough positive NPV projects
Because, companies do not always have access to all of the funds they could make use of
Because, managers find it difficult to decide how to fund projects
Because, banks require very high returns on projects
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 8 of 15 ( Start time: 05:39:53 PM ) Total Marks: 1
What is the present value of Rs. 3,500,000 to be paid at the end of 50 years if the correct risk adjusted interest rate is 18%?
Select correct option:
Rs.105,000
Rs.1,500,000
Rs.3975,000
Rs. 350,000
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 9 of 15 ( Start time: 05:41:20 PM ) Total Marks: 1
When the zero coupon bond approaches to its maturity, the market value of the bond approaches to which of the following?
Select correct option:
Intrinsic value
Book value
Par value
Historic cost
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 10 of 15 ( Start time: 05:41:27 PM ) Total Marks: 1
Which of the following would be considered a cash-flow item from an "operating" activity?
Select correct option:
Cash outflow to the government for taxes
Cash outflow to shareholders as dividends
Cash inflow to the firm from selling new common equity shares
Cash outflow to purchase bonds issued by another company
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 11 of 15 ( Start time: 05:42:22 PM ) Total Marks: 1
Which of the following refers to the risk associated with interest rate uncertainty?
Select correct option:
Default risk premium
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 12 of 15 ( Start time: 05:42:35 PM ) Total Marks: 1
Which of the following refers to a highly competitive market where good business ideas are taken up immediately?
Select correct option:
Capital market
Efficient market
Money market
Real asset market
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 13 of 15 ( Start time: 05:42:58 PM ) Total Marks: 1
What is the most important criteria in capital budgeting?
Select correct option:
Return on investment
Profitability index
Net present value
Pay back period
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 14 of 15 ( Start time: 05:43:23 PM ) Total Marks: 1
Which of the following statements (in general) is correct?
Select correct option:
A low receivables turnover is desirable
The lower the total debt-to-equity ratio, the lower the financial risk for a firm
An increase in net profit margin with no change in sales or assets means a weaker ROI
The higher the tax rate for a firm, the lower the interest coverage ratio
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 15 of 15 ( Start time: 05:44:06 PM ) Total Marks: 1
What should be the focal point of financial management in a firm?
Select correct option:
The number and types of products or services provided by the firm
The minimization of the amount of taxes paid by the firm
The creation of value for shareholders
The dollars profits earned by the firm
When the bond approaches its maturity, the market value of the bond approaches to which of the following?
Select correct option:
Intrinsic value
Book value
Par value (Correct)
Historic cost
Question # 2 of 15 ( Start time: 09:14:35 PM ) Total Marks: 1
Which of the following refers to the risk associated with interest rate uncertainty?
Select correct option:
Default risk premium (Correct)
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Question # 3 of 15 ( Start time: 09:15:38 PM ) Total Marks: 1
When the zero coupon bond approaches to its maturity, the market value of the bond approaches to which of the following?
Select correct option:
Intrinsic value
Book value (Correct)
Par value
Historic cost
Question # 4 of 15 ( Start time: 09:17:00 PM ) Total Marks: 1
What is difference between shares and bonds?
Select correct option:
Bonds are representing ownership whereas shares are not
Shares are representing ownership whereas bonds are not (Correct)
Shares and bonds both represent equity
Shares and bond both represent liabilities
mc090401219: Question # 5 of 15 ( Start time: 09:18:04 PM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding (Correct)
Periodic interest rate ignores the effect of inflation
All of the given options
Question # 6 of 15 ( Start time: 09:18:48 PM ) Total Marks: 1
Which of the following refers to a highly competitive market where good business ideas are taken up immediately?
Select correct option:
Capital market
Efficient market (Correct)
Money market
Real asset market
Question # 7 of 15 ( Start time: 09:20:10 PM ) Total Marks: 1
A technique that tells us the number of years required to recover our initial cash investment based on the project’s expected cash flows is:
Select correct option:
Pay back period (Correct)
Internal rate of return
Net present value
Profitability index
Question # 8 of 15 ( Start time: 09:21:01 PM ) Total Marks: 1
Which of the following can not be the drawback of using payback period technique of capital budgeting?
Select correct option:
It does not account for time value of money (Correct)
It neglects cash flows after the payback period
It does not use interest rate while making calculations
It is a tricky and complicated method
Question # 9 of 15 ( Start time: 09:22:03 PM ) Total Marks: 1
Which of the following allows to graphically depicting the timing of the cash flows as well as their nature as either inflows or outflows?
Select correct option:
Cash flow diagram (Correct)
Cash budget
Cash flow statement
None of the given options
Question # 10 of 15 ( Start time: 09:22:45 PM ) Total Marks: 1
Which of the following statements is TRUE regarding Permanent Accounts?
Select correct option:
Accounts that are found on Income Statement
Accounts that are found on Statement of Retained Earnings
Accounts that are found on Balance Sheet
All of the given options
Question # 11 of 15 ( Start time: 09:24:06 PM ) Total Marks: 1
The statement of cash flows reports a firm's cash flows segregated into which of the following categorical order?
Select correct option:
Operating, investing, and financing
Investing, operating, and financing (Correct)
Financing, operating and investing
Financing, investing, and operating
Question # 12 of 15 ( Start time: 09:25:15 PM ) Total Marks: 1
Which of the following needs to be excluded while we calculate the incremental cash flows?
Select correct option:
Depreciation
Sunk cost (Correct)
Opportunity cost
Non-cash item
Question # 13 of 15 ( Start time: 09:26:33 PM ) Total Marks: 1
Which of the following is a capital budgeting technique that is NOT considered as discounted cash flow method?
Select correct option:
Payback period (Correct)
Internal rate of return
Net present value
Profitability index
Question # 14 of 15 ( Start time: 09:27:40 PM ) Total Marks: 1
The value of a bond is directly derived from which of the following?
Select correct option:
Cash flows
Coupon receipts (Correct)
Par recovery at maturity
All of the given options
Question # 14 of 15 ( Start time: 09:27:40 PM ) Total Marks: 1
The value of a bond is directly derived from which of the following?
Select correct option:
Cash flows
Coupon receipts (Correct)
Par recovery at maturity
All of the given options
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Question # 1 of 15 ( Start time: 09:32:06 PM ) Total Marks: 1
A technique that tells us the number of years required to recover our initial cash investment based on the project’s expected cash flows is:
Select correct option:
Pay back period (Correct)
Internal rate of return
Net present value
Profitability index
Question # 2 of 15 ( Start time: 09:33:11 PM ) Total Marks: 1
Which of the following is NOT an example of a financial intermediary?
Select correct option:
Wisconsin S&L, a savings and loan association
Strong Capital Appreciation, a mutual fund
Microsoft Corporation, a software firm (Correct)
College Credit, a credit union
Question # 3 of 15 ( Start time: 09:33:49 PM ) Total Marks: 1
When a bond will sell at a discount?
Select correct option:
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
The coupon rate is greater than yield to maturity
The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
The coupon rate is less than the current yield and the current yield is less than yield to maturity (Correct)
Question # 4 of 15 ( Start time: 09:34:34 PM ) Total Marks: 1
When bonds are issued, under which of the following category the value of the bond appears?
Select correct option:
Equity
Fixed assets
Short term loan
Long term loan (Correct)
Question # 5 of 15 ( Start time: 09:35:06 PM ) Total Marks: 1
Which of the following can not be the drawback of using payback period technique of capital budgeting?
Select correct option:
It does not account for time value of money
It neglects cash flows after the payback period
It does not use interest rate while making calculations
It is a tricky and complicated method (Correct)
Question # 6 of 15 ( Start time: 09:35:46 PM ) Total Marks: 1
An investment proposal should be judged in whether or not it provides:
Select correct option:
A return equal to the return require by the investor
A return more than required by investor (Correct)
A return less than required by investor
A return equal to or more than required by investor
Question # 7 of 15 ( Start time: 09:36:51 PM ) Total Marks: 1
Which of the following is a major disadvantage of the corporate form of organization?
Select correct option:
Double taxation of dividends (Correct)
Inability of the firm to raise large sums of additional capital
Limited liability of shareholders
Limited life of the corporate form
Question # 8 of 15 ( Start time: 09:37:49 PM ) Total Marks: 1
Which of the following is NOT an example of hybrid equity
Select correct option:
Convertible Bonds
Convertible Debenture
Common shares (Correct)
Preferred shares
Question # 9 of 15 ( Start time: 09:38:55 PM ) Total Marks: 1
Which of the following is/are the component(s) of working capital management?
Select correct option:
Current assets (Correct)
Fixed assets
Fixed assets and long-term liabilities
Current assets and current liabilities
Question # 10 of 15 ( Start time: 09:40:18 PM ) Total Marks: 1
Which of the following statements (in general) is correct?
Select correct option:
A low receivables turnover is desirable
The lower the total debt-to-equity ratio, the lower the financial risk for a firm (Correct)
An increase in net profit margin with no change in sales or assets means a weaker ROI
The higher the tax rate for a firm, the lower the interest coverage ratio
Question # 11 of 15 ( Start time: 09:41:43 PM ) Total Marks: 1
What should be the focal point of financial management in a firm?
Select correct option:
The number and types of products or services provided by the firm
The minimization of the amount of taxes paid by the firm
The creation of value for shareholders
The dollars profits earned by the firm(Correct)
Question # 12 of 15 ( Start time: 09:42:43 PM ) Total Marks: 1
With continuous compounding at 8 percent for 20 years, what is the approximate future value of a Rs. 20,000 initial investment?
Select correct option:
Rs.52,000
Rs.93,219 (Correct)
Rs.99,061
Rs.915,240
Question # 13 of 15 ( Start time: 09:43:14 PM ) Total Marks: 1
Who or what is a person or institution designated by a bond issuer as the official representative of the bondholders?
Select correct option:
Indenture
Debenture
Bond
Bond trustee (Correct)
Question # 14 of 15 ( Start time: 09:44:04 PM ) Total Marks: 1
Which of the following is FALSE about Perpetuity?
Select correct option:
It is a series of cash flows
Cash flows occur for a specific time period
Its cash flows are identical (Correct)
None of the given options
Question # 15 of 15 ( Start time: 09:45:14 PM ) Total Marks: 1
Which of the following refers to bringing the future cash flow to the present time?
Select correct option:
Net present value
Discounting (Correct)
Opportunity cost
Internal rate of return
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Question # 1 of 15 ( Start time: 09:49:12 PM ) Total Marks: 1
Given no change in required returns, the price of a stock whose dividend is constant will________.
Select correct option:
Decrease over time at a rate of r%
Remain unchanged (Correct)
Increase over time at a rate of r%
Decrease over time at a rate equal to the dividend growth rate
Question # 2 of 15 ( Start time: 09:50:02 PM ) Total Marks: 1
Which of the following refers to a highly competitive market where good business ideas are taken up immediately?
Select correct option:
Capital market
Efficient market (Correct)
Money market
Real asset market
Virtual: 2
zahid.famous: 2
saadkhan545: Question # 3 of 15 ( Start time: 09:50:40 PM ) Total Marks: 1
Which of the following is the Double Entry Principle?
Select correct option:
Assets + Liabilities = Shareholders’ Equity
Assets = Liabilities + Shareholders’ Equity
Liabilities = Assets + Shareholders’ Equity (Correct)
None of the given options
Question # 4 of 15 ( Start time: 09:51:21 PM ) Total Marks: 1
Which of the following equation is NOT correct?
Select correct option:
Gross Revenue – Admin & Operating Expenses = Operating Revenue
Other Expenses + Other Revenue = EBIT (Correct)
EBIT – Financial Charges & Interest = EBT
Net Income – Dividends = Retained Earning
Question # 5 of 15 ( Start time: 09:52:38 PM ) Total Marks: 1
With continuous compounding at 8 percent for 20 years, what is the approximate future value of a Rs. 20,000 initial investment?
Select correct option:
Rs.52,000
Rs.93,219 (Correct)
Rs.99,061
Rs.915,240
5:53 PM
Question # 6 of 15 ( Start time: 09:54:01 PM ) Total Marks: 1
To increase a given future value, the discount rate should be adjusted ________.
Select correct option:
Upward
Downward (Correct)
First upward and then downward
None of the given options
Question # 7 of 15 ( Start time: 09:55:36 PM ) Total Marks: 1
Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation?
Select correct option:
Par value
Market value (Correct)
Intrinsic value
Face value
Question # 8 of 15 ( Start time: 09:57:06 PM ) Total Marks: 1
Which of the following refers to time value of money concept?
Select correct option:
A rupee in one’s hand at present is worth less than the rupee that one is going to receive tomorrow (Correct)
A rupee in one’s hand at present is worth more than the rupee that one is going to receive tomorrow
A rupee in one’s hand at present is worth same as the rupee that one is going to receive tomorrow
All of the given options
Question # 9 of 15 ( Start time: 09:57:59 PM ) Total Marks: 1
Which of the following is NOT true regarding an ordinary annuity?
Select correct option:
It is a series of equal cash flows
Cash flows occur for a specific time period (Correct)
Payments are made at the start of each period
It is also known as deferred annuity
Question # 10 of 15 ( Start time: 09:58:47 PM ) Total Marks: 1
Which of the following includes the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization?
Select correct option:
Financial accounting
Financial management (Correct)
Financial engineering
Financial budgeting
5:59 PM
Question # 11 of 15 ( Start time: 09:59:08 PM ) Total Marks: 1
Which of the following is FALSE about Perpetuity?
Select correct option:
It is a series of cash flows
Cash flows occur for a specific time period
Its cash flows are identical (Correct)
None of the given options
Question # 12 of 15 ( Start time: 10:00:31 PM ) Total Marks: 1
Which of the following term may be defined as incidental cash flows that arise because of the effect of new project on the running business?
Select correct option:
Sunk cost
Opportunity cost
Externalities (Correct)
Contingencies
Question # 13 of 15 ( Start time: 10:01:09 PM ) Total Marks: 1
What is the present value of Rs. 3,500,000 to be paid at the end of 50 years if the correct risk adjusted interest rate is 18%?
Select correct option:
Rs.105,000
Rs.1,500,000
Rs.3975,000
Rs. 350,000
saadkhan545: Question # 14 of 15 ( Start time: 10:02:19 PM ) Total Marks: 1
Which if the following refers to capital budgeting?
Select correct option:
Investment in long-term liabilities (Correct)
Investment in fixed assets
Investment in current assets
Investment in short-term liabilities
Question # 15 of 15 ( Start time: 10:03:16 PM ) Total Marks: 1
An annuity due is always worth ___ a comparable annuity.
Select correct option:
Less than
More than (Correct)
Equal to
Can not be found from the given information
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Question # 1 of 15 ( Start time: 10:22:47 PM ) Total Marks: 1
The statement of cash flows reports a firm's cash flows segregated into which of the following categorical order?
Select correct option:
Operating, investing, and financing
Investing, operating, and financing (Correct)
Financing, operating and investing
Financing, investing, and operating
Question # 2 of 15 ( Start time: 10:23:52 PM ) Total Marks: 1
When a bond will sell at a discount?
Select correct option:
The coupon rate is greater than the current yield and the current yield is greater than yield to maturity
The coupon rate is greater than yield to maturity
The coupon rate is less than the current yield and the current yield is greater than the yield to maturity
The coupon rate is less than the current yield and the current yield is less than yield to maturity (Correct)
Question # 3 of 15 ( Start time: 10:24:25 PM ) Total Marks: 1
If Net Present Value technique is used, what is the minimum acceptance criterion for a project?
Select correct option:
NPV<0
NPV=0
NPV>0
NPV<=0 (Correct)
Question # 4 of 15 ( Start time: 10:25:44 PM ) Total Marks: 1
Which if the following refers to capital budgeting?
Select correct option:
Investment in long-term liabilities
Investment in fixed assets (Correct)
Investment in current assets
Investment in short-term liabilities
Question # 5 of 15 ( Start time: 10:26:13 PM ) Total Marks: 1
Which of the following is FALSE about Perpetuity?
Select correct option:
It is a series of cash flows
Cash flows occur for a specific time period
Its cash flows are identical (Correct)
None of the given options
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Question # 1 of 15 ( Start time: 10:37:35 PM ) Total Marks: 1
What are the three classes of factors that influence perception?
Select correct option:
Factors in the setting, factors in the environment and factors in the motives
Factors in the perceiver, factors in the target and factors in the situation
Factors in the character, factors in knowledge and factors in experience
Factors in the personality, factors in the character and factors in the values
Question # 6 of 15 ( Start time: 10:39:02 PM ) Total Marks: 1
Characteristics such as age, gender and marital status are known as _______________
Select correct option:
Psychographic characteristics
Biographical characteristics
Geographical characteristics
Behavioral characteristics
Question # 2 of 15 ( Start time: 10:39:05 PM ) Total Marks: 1
What is the term used for a general impression about an individual based on a single characteristic such as intelligence, sociability, or appearance?
Select correct option:
The contrast effect
Personal bias
The halo effect (Correct)
Projection
Question # 3 of 15 ( Start time: 10:40:25 PM ) Total Marks: 1
Ability to understand what is read or heard and the relationship of words to each other is called ___________
Select correct option:
Verbal comprehension (Correct)
Non verbal comprehension
Perceptual speed
Memory
Question # 8 of 15 ( Start time: 10:40:50 PM ) Total Marks: 1
Which of the following is true of people with a Type A personality?
Select correct option:
They are generally content with their place in the world
They generally feel little need to discuss their achievements
They are easy going and relaxed that’s why take no tension of work
They have an intense desire to achieve and are extremely competitive (Correct)
Question # 4 of 15 ( Start time: 10:41:19 PM ) Total Marks: 1
A person or ***** with a direct interest, involvement, or investment in organization is called ____________.
Select correct option:
Shareholder (Correct)
Stakeholder
Stockholder
Patron
Question # 5 of 15 ( Start time: 10:42:18 PM ) Total Marks: 1
If a person responds the same way over time, attribution theory states that the behavior shows:
Select correct option:
Distinctiveness
Consensus
Consistency (Correct)
Continuity
Question # 6 of 15 ( Start time: 10:43:45 PM ) Total Marks: 1
_________ focuses on the study of people in relation to their social environment.
Select correct option:
Psychology
Sociology (Correct)
Corporate strategy
Political science
Question # 7 of 15 ( Start time: 10:45:13 PM ) Total Marks: 1
Which of the following term is used to describe broad range of feelings that people experience?
Select correct option:
Mood (Correct)
Affect
Emotion
Emotional Intelligence
Question # 8 of 15 ( Start time: 10:46:41 PM ) Total Marks: 1
Hanif is dissatisfied with his job but believes that his supervisor is a good man who will do the right thing. Hanif has decided that if he just waits, conditions will improve. Henry’s approach to this problem is termed as:
Select correct option:
Exit
Voice
Loyalty
Neglect (Correct)
Question # 9 of 15 ( Start time: 10:48:11 PM ) Total Marks: 1
Job satisfaction is best described as __________.
Select correct option:
A result
A value
An attitude (Correct)
A discipline
Question # 10 of 15 ( Start time: 10:49:37 PM ) Total Marks: 1
Which of the following theory is proposed by Clayton Alderfer?
Select correct option:
Theory X and Theory Y
Hierarchy of Needs
ERG Theory (Correct)
Theory Z
Question # 11 of 15 ( Start time: 10:50:24 PM ) Total Marks: 1
Robert Katz identified three essential skills that managers need to have in order to reach their goals. What are these skills?
Select correct option:
Technical, decisional and interpersonal (Correct)
Technical, human, and conceptual
Interpersonal, informational and decisional
Conceptual, communication and networking
Question # 12 of 15 ( Start time: 10:51:47 PM ) Total Marks: 1
One of the shortcuts used to judge others involves evaluating a person based on how he/she compares to other individuals on the same characteristic. What is this shortcut called?
Select correct option:
Selective perception
The contrast effect
The halo effect (Correct)
Stereotyping
Question # 13 of 15 ( Start time: 10:52:24 PM ) Total Marks: 1
Which of the following factors make it imperative that organizations be fast and flexible?
Select correct option:
Temporariness
Corporate excess
Advances in corporate strategy
Globalization
Question # 14 of 15 ( Start time: 10:53:58 PM ) Total Marks: 1
When Job satisfaction is increased, absenteeism tends to:
Select correct option:
Increase
Decrease
Have no effect
None of the above
Question # 15 of 15 ( Start time: 10:54:48 PM ) Total Marks: 1
Difficulty in expressing emotions by an individual and understanding other's emotions is termed as:
Select correct option:
Anemia
Thalassemia
Alexithymia
Myopia
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Question # 1 of 15 ( Start time: 10:58:08 PM ) Total Marks: 1
What is the present value of Rs.8,000 to be paid at the end of three years if interest rate is 11%?
Select correct option:
Rs.6,015
Rs.4,872
Rs.6,725
Rs.1,842
6:59 PM
Question # 3 of 15 ( Start time: 11:00:17 PM ) Total Marks: 1
The logic behind _______ is that instead of looking at net cash flows you look at cash inflows and outflows separately for each point in time.
Select correct option:
IRR
MIRR (Correct)
PV
NPV
Question # 5 of 15 ( Start time: 11:02:10 PM ) Total Marks: 1
_______ is equal to (common shareholders' equity/common shares outstanding).
Select correct option:
Book value per share
Liquidation value per share (Correct)
Market value per share
None of the above
Question # 7 of 15 ( Start time: 11:03:42 PM ) Total Marks: 1
Discounted cash flow methods provide a more objective basis for evaluating and selecting an investment project. These methods take into account:
Select correct option:
Magnitude of expected cash flows
Timing of expected cash flows
Both timing and magnitude of cash flows
None of the given options
Question # 7 of 15 ( Start time: 11:03:42 PM ) Total Marks: 1
Discounted cash flow methods provide a more objective basis for evaluating and selecting an investment project. These methods take into account:
Select correct option:
Magnitude of expected cash flows
Timing of expected cash flows
Both timing and magnitude of cash flows
None of the given options
Question # 8 of 15 ( Start time: 11:04:28 PM ) Total Marks: 1
Which of the following allows to graphically depicting the timing of the cash flows as well as their nature as either inflows or outflows?
Select correct option:
Cash flow diagram
Cash budget
Cash flow statement
None of the given options (Correct)
Question # 9 of 15 ( Start time: 11:05:08 PM ) Total Marks: 1
Which of the following is/are the characteristic(s) of Perpetuity?
Select correct option:
It is an annuity
It has no definite end (Correct)
It is a constant stream of identical cash flows
All of the given options
Question # 10 of 15 ( Start time: 11:06:02 PM ) Total Marks: 1
What type of long-term financing most likely has the following features: 1) it has an infinite life, 2) it pays dividends, and 3) its cash flows are expected to be a constant annuity stream?
Select correct option:
Long-term debt
Preferred stock
Common stock
None of the given options (Correct)
Question # 11 of 15 ( Start time: 11:06:58 PM ) Total Marks: 1
What is the most important criteria in capital budgeting?
Select correct option:
Return on investment
Profitability index (Correct)
Net present value
Pay back period
mehak: Question # 12 of 15 ( Start time: 11:08:07 PM ) Total Marks: 1
What is the additional amount a borrower must pay to lender to compensate for assuming the risk associated with non-payment?
Select correct option:
Default risk premium
Sovereign Risk Premium (Correct)
Market risk premium
Maturity risk premium
Question # 13 of 15 ( Start time: 11:08:46 PM ) Total Marks: 1
What is the present value of Rs.1,000 to be paid at the end of 5 years if the correct risk adjusted interest rate is 8%?
Select correct option:
Rs.714
Rs.1,462
Rs.322.69
Rs.401.98
Question # 14 of 15 ( Start time: 11:10:09 PM ) Total Marks: 1
______ are also known as Spontaneous Financing.
Select correct option:
Current liabilities
Current assets (Correct)
Fixed assets
Long-term liabilities
Question # 15 of 15 ( Start time: 11:11:06 PM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding (Correct)
Periodic interest rate ignores the effect of inflation
All of the given options
Question # 1 of 15 ( Start time: 06:55:34 PM ) Total Marks: 1
What is yield to maturity on a bond?
Select correct option:
Below the coupon rate when the bond sells at a discount, and equal to the coupon rate when the bond sells at a premium
The discount rate that will set the present value of the payments equal to the bond price
Based on the assumption that any payments received are reinvested at the coupon rate
None of the above
Question # 2 of 15 ( Start time: 06:56:42 PM ) Total Marks: 1
According to timing difference problem a good project might suffer from _____ IRR even though its NPV is ________.
Select correct option:
Higher; lower
Lower; Lower
Lower; higher
Higher; higher
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 3 of 15 ( Start time: 06:57:21 PM ) Total Marks: 1
For Company A, plow back ratio is 30%. What will be its Pay-out ratio?
Select correct option:
3.33%
30%
31%
70%
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 4 of 15 ( Start time: 06:58:21 PM ) Total Marks: 1
The value of a bond is directly derived from which of the following?
Select correct option:
Cash flows
Coupon receipts
Par recovery at maturity
All of the given options
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 5 of 15 ( Start time: 06:58:48 PM ) Total Marks: 1
________ is paid by companies with lower grade bonds like CC or C ratings.
Select correct option:
Default risk premium
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 6 of 15 ( Start time: 07:00:18 PM ) Total Marks: 1
If Net Present Value technique is used, what is the ranking criterion for projects?
Select correct option:
Choose the highest NPV
Choose the lowest NPV
Choose the project with longest term
Choose the project with shortest term
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 7 of 15 ( Start time: 07:00:45 PM ) Total Marks: 1
Which of the following is a capital budgeting technique that is NOT considered as discounted cash flow method?
Select correct option:
Payback period
Internal rate of return
Net present value
Profitability index
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 8 of 15 ( Start time: 07:01:58 PM ) Total Marks: 1
The current yield on a bond is equal to ________.
Select correct option:
Annual interest divided by the current market price
The yield to maturity
Annual interest divided by the par value
The internal rate of return
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 9 of 15 ( Start time: 07:03:22 PM ) Total Marks: 1
Which of the following is likely to be correct for a company which invests in projects with Positive NPV?
Select correct option:
Company’s EVA (Economic Value Added) rises by the same value
Company’s MVA (Market Value Added) or market value rises
Company Shareholders’ Wealth rises
All of the given options
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 10 of 15 ( Start time: 07:04:03 PM ) Total Marks: 1
Which of the following is NOT true regarding an annuity due?
Select correct option:
It is a series of equal cash flows
It is also known as deferred annuity
Cash flows occur for a specific time period
Payments are made at the start of each period
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 11 of 15 ( Start time: 07:05:15 PM ) Total Marks: 1
Which of the following is type a Temporary Account?
Select correct option:
Asset
Liability
Reserves
Revenue
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 12 of 15 ( Start time: 07:06:35 PM ) Total Marks: 1
If we were to increase ABC company cost of equity assumption, what would we expect to happen to the present value of all future cash flows?
Select correct option:
An increase
A decrease
No change
Incomplete information
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 13 of 15 ( Start time: 07:07:47 PM ) Total Marks: 1
Which of the following refers to the risk associated with interest rate uncertainty?
Select correct option:
Default risk premium
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Quiz Start Time: 06:55 PM Time Left 88
sec(s)
Question # 14 of 15 ( Start time: 07:08:32 PM ) Total Marks: 1
Which of the following statements (in general) is correct?
Select correct option:
A low receivables turnover is desirable
The lower the total debt-to-equity ratio, the lower the financial risk for a firm
An increase in net profit margin with no change in sales or assets means a weaker ROI
The higher the tax rate for a firm, the lower the interest coverage ratio
Quiz Start Time: 06:55 PM Time Left 89
sec(s)
Question # 15 of 15 ( Start time: 07:09:07 PM ) Total Marks: 1
With continuous compounding at 8 percent for 20 years, what is the approximate future value of a Rs. 20,000 initial investment?
Select correct option:
Rs.52,000
Rs.93,219
Rs.99,061
Rs.915,240
Quiz Start Time: 05:31 PM
Time Left 38
sec(s)
Question # 1 of 15 ( Start time: 05:31:55 PM ) Total Marks: 1
Which of the following is the general assumption of Percent of Sales Forecasting?
Select correct option:
Current Assets usually grow in proportion to Revenues
Current Assets usually grow in proportion to Expenses
Current Assets usually grow in proportion to Liabilities
Current Assets usually grow in proportion to Sales
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 2 of 15 ( Start time: 05:33:20 PM ) Total Marks: 1
In 2 years you are to receive Rs.10,000. If the interest rate were to suddenly decrease, the present value of that future amount to you would __________.
Select correct option:
Fall
Rise
Remain unchanged
Incomplete information
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 3 of 15 ( Start time: 05:33:59 PM ) Total Marks: 1
Effective interest rate is different from nominal rate of interest because:
Select correct option:
Nominal interest rate ignores compounding
Nominal interest rate includes frequency of compounding
Periodic interest rate ignores the effect of inflation
All of the given options
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 4 of 15 ( Start time: 05:35:22 PM ) Total Marks: 1
What is a legal agreement, also called the deed of trust, between the corporation issuing bonds and the bondholders that establish the terms of the bond issue?
Select correct option:
Indenture
Debenture
Bond
Bond trustee
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 5 of 15 ( Start time: 05:36:28 PM ) Total Marks: 1
All of the following are the reasons for Uncertain NPV calculations EXCEPT:
Select correct option:
Estimated discount rate does not change with the markets
Estimated Life of project is doubtful
Annual after-tax cash flows are difficult to estimate
Timing of cash flows is not exactly predictable
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 6 of 15 ( Start time: 05:37:36 PM ) Total Marks: 1
Which of the following would generally have unlimited liability?
Select correct option:
A limited partner in a partnership
A shareholder in a corporation
The owner of a sole proprietorship
A member in a limited liability company (LLC)
Quiz Start Time: 05:31 PM
Time Left 88
sec(s)
Question # 7 of 15 ( Start time: 05:38:38 PM ) Total Marks: 1
Why we need Capital rationing? (
Select correct option:
Because, there are not enough positive NPV projects
Because, companies do not always have access to all of the funds they could make use of
Because, managers find it difficult to decide how to fund projects
Because, banks require very high returns on projects
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 8 of 15 ( Start time: 05:39:53 PM ) Total Marks: 1
What is the present value of Rs. 3,500,000 to be paid at the end of 50 years if the correct risk adjusted interest rate is 18%?
Select correct option:
Rs.105,000
Rs.1,500,000
Rs.3975,000
Rs. 350,000
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 9 of 15 ( Start time: 05:41:20 PM ) Total Marks: 1
When the zero coupon bond approaches to its maturity, the market value of the bond approaches to which of the following?
Select correct option:
Intrinsic value
Book value
Par value
Historic cost
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 10 of 15 ( Start time: 05:41:27 PM ) Total Marks: 1
Which of the following would be considered a cash-flow item from an "operating" activity?
Select correct option:
Cash outflow to the government for taxes
Cash outflow to shareholders as dividends
Cash inflow to the firm from selling new common equity shares
Cash outflow to purchase bonds issued by another company
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 11 of 15 ( Start time: 05:42:22 PM ) Total Marks: 1
Which of the following refers to the risk associated with interest rate uncertainty?
Select correct option:
Default risk premium
Sovereign Risk Premium
Market risk premium
Maturity risk premium
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 12 of 15 ( Start time: 05:42:35 PM ) Total Marks: 1
Which of the following refers to a highly competitive market where good business ideas are taken up immediately?
Select correct option:
Capital market
Efficient market
Money market
Real asset market
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 13 of 15 ( Start time: 05:42:58 PM ) Total Marks: 1
What is the most important criteria in capital budgeting?
Select correct option:
Return on investment
Profitability index
Net present value
Pay back period
Quiz Start Time: 05:31 PM
Time Left 90
sec(s)
Question # 14 of 15 ( Start time: 05:43:23 PM ) Total Marks: 1
Which of the following statements (in general) is correct?
Select correct option:
A low receivables turnover is desirable
The lower the total debt-to-equity ratio, the lower the financial risk for a firm
An increase in net profit margin with no change in sales or assets means a weaker ROI
The higher the tax rate for a firm, the lower the interest coverage ratio
Quiz Start Time: 05:31 PM
Time Left 89
sec(s)
Question # 15 of 15 ( Start time: 05:44:06 PM ) Total Marks: 1
What should be the focal point of financial management in a firm?
Select correct option:
The number and types of products or services provided by the firm
The minimization of the amount of taxes paid by the firm
The creation of value for shareholders
The dollars profits earned by the firm
