Finance MCQs

Page No. 36

In which type of business, all owners share in gains and losses and all have unlimited liability for all business debts?


aSole-proprietorship

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bGeneral Partnership

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cLimited Partnerhsip

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dCorporation

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View Answer General Partnership

Business Finance addresses which of the following?


aCapital budgeting

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bCapital structure

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cWorking capital management

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dAll of the given options

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A company having a current ratio of 1 will have ________ net working capital.


aPositive

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bNegative

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czero

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dNone of the given options

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View Answer zero

Which of the given area is NOT addressed by Business Finance?


aFinancing

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bInvesting

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cManaging day today expenses

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dNone of the given options

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Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.


a long-term; short-term

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bshort-term; long-term

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clower-coupon; higher-coupon

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dNone of the given options

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View Answer short-term; long-term

In which of the following type of annuity, cash flows occur at the beginning of each period?


aOrdinary annuity

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bAnnuity due

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cPerpetuity

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dNone of the given options

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View Answer Annuity due

You need Rs. 10,000 to buy a new television. If you have Rs. 6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television?


a8.42 years

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b10.51 years

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c15.75 years

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d18.78 years

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View Answer 10.51 years

The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:


aDiscounting

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bCompounding

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cFactorization

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dNone of the given options

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View Answer Discounting

Which of the following item provides the important function of shielding part of income from taxes?


aInventory

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bSupplies

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cMachinery

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dDepreciation

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View Answer Depreciation

In which form of Business, owners have limited liability?


asole proprietorship

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bpartnership

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cjoint stock company

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dnone of the above

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View Answer joint stock company

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