Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?
(A) Fluctuations Risk
(B) Interest Rate Risk
(C) Real-Time Risk
(D) Inflation Risk
How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?
(A) 6 years
(B) 12 years
(C) 24 years
(D) 48 years
Which of the following is measured by retention ratio?
(A) Operating efficiency
(B) Asset use efficiency
(C) Financial policy
(D) Dividend policy
In which type of business, all owners share in gains and losses and all have unlimited liability for all business debts?
(A) Sole-proprietorship
(B) General Partnership
(C) Limited Partnerhsip
(D) Corporation
Business Finance addresses which of the following?
(A) Capital budgeting
(B) Capital structure
(C) Working capital management
(D) All of the given options
A company having a current ratio of 1 will have ________ net working capital.
(A) Positive
(B) Negative
(C) zero
(D) None of the given options
A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?
(A) Rs. 300,000
(B) Rs. 500,000
(C) Rs. 800,000
(D) Rs. 1100,000
Which of the following statement is TRUE regarding debt?
(A) Debt is an ownership interest in the firm.
(B) Unpaid debt can result in bankruptcy or financial failure.
(C) Debt provides the voting rights to the bondholders.
(D) Corporation’s payment of interest on debt is fully taxabl
If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
(A) Rs. 5,400
(B) Rs. 5,900
(C) Rs. 6,600
(D) Rs. 6,802
Which of the following statement about bond ratings is TRUE?
(A) Bond ratings are typically paid for by a company’s bondholders.
(B) Bond ratings are based solely on information acquired from sources other than the bond issuer.
(C) Bond ratings represent an independent assessment of the credit-worthiness of bonds.
(D) None of the given options