Finance Mcqs

Number of years forecasted to recover an original investment is classified as________?

(A) Payback period

(B) Forecasted period

(C) Original period

(D) Investment period

Submitted By: Ali Uppal


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

Submitted By: Ali Uppal


Submitted By: Ali Uppal


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

Submitted By: Ali Uppal


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

Submitted By: Ali Uppal


Situation in which firm limits expenditures on capital is classified as________?

(A) Optimal rationing

(B) Capital rationing

(C) Marginal rationing

(D) Transaction rationing

Submitted By: Ali Uppal


Price for debt is called_________?

(A) Debt rate

(B) Investment return

(C) Discount rate

(D) Interest rate

Submitted By: Ali Uppal


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

Submitted By: Ali Uppal


Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as______________?

(A) Financial instruments

(B) Capital assets

(C) Primary assets

(D) Competitive instruments

Submitted By: Ali Uppal


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

Submitted By: Ali Uppal