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


bGeneral Partnership


cLimited Partnerhsip


dCorporation


View Answer General Partnership

Business Finance addresses which of the following?


aCapital budgeting


bCapital structure


cWorking capital management


dAll of the given options



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


aPositive


bNegative


czero


dNone of the given options


View Answer zero

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


aFinancing


bInvesting


cManaging day today expenses


dNone of the given options



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


bshort-term; long-term


clower-coupon; higher-coupon


dNone of the given options


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


bAnnuity due


cPerpetuity


dNone of the given options


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


b10.51 years


c15.75 years


d18.78 years


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


bCompounding


cFactorization


dNone of the given options


View Answer Discounting

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


aInventory


bSupplies


cMachinery


dDepreciation


View Answer Depreciation

In which form of Business, owners have limited liability?


asole proprietorship


bpartnership


cjoint stock company


dnone of the above


View Answer joint stock company

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