Number of years forecasted to recover an original investment is classified as________?
(A) Payback period
(B) Forecasted period
(C) Original period
(D) Investment period
Process in which managers of company identify projects to add value is classified as__________?
(A) Capital budgeting
(B) Cost budgeting
(C) Book value budgeting
(D) Equity budgeting
Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________?
(A) Negative
(B) Zero
(C) Positive
(D) Independent
Other factors held constant, greater project liquidity is because of___________?
(A) Less project returns
(B) Greater project return
(C) Shorter payback period
(D) Greater payback period
An internal rate of return in capital budgeting can be modified to make it representative of_________?
(A) Relative outflow
(B) Relative inflow
(C) Relative cost
(D) Relative profitability
Situation in which firm limits expenditures on capital is classified as________?
(A) Optimal rationing
(B) Capital rationing
(C) Marginal rationing
(D) Transaction rationing
Price for debt is called_________?
(A) Debt rate
(B) Investment return
(C) Discount rate
(D) Interest rate
Set of rules consisting of behavior towards its directors, creditors, shareholders, competitors and community is considered as____________?
(A) Agency governance
(B) Hiring governance
(C) Corporate governance
(D) External governance
Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as______________?
(A) Financial instruments
(B) Capital assets
(C) Primary assets
(D) Competitive instruments
Legal entity separation from its legal owners and managers with help of state laws is classified as____________?
(A) Controlled corporate business
(B) Corporation
(C) Limited corporate business
(D) Unlimited corporate business