Finance Mcqs

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

Submitted By: Ali Uppal


Submitted By: Ali Uppal


Which of the following is measured by retention ratio?

(A) Operating efficiency

(B) Asset use efficiency

(C) Financial policy

(D) Dividend policy

Submitted By: Ali Uppal


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

Submitted By: Ali Uppal


Business Finance addresses which of the following?

(A) Capital budgeting

(B) Capital structure

(C) Working capital management

(D) All of the given options

Submitted By: Ali Uppal


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

Submitted By: Ali Uppal


Submitted By: Ali Uppal


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

Submitted By: Ali Uppal


Submitted By: Ali Uppal


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

Submitted By: Ali Uppal