Business Finance

The face value of a share is also known as

•     Market value

•     Par value

• Book value

• All of above

The nominal rate of interest on some loan notes is usually known as the

•     redemption

•     coupon

• flat

• yield

   Quick assets refer to

• Total assets minus inventory & prepaid expenses.

• Current assets minus inventory & prepaid expenses.

• Current assets plus inventory & prepaid expenses.

• None of above.

Methods of raising additional equity finance is:

• Retained profit

•   Bonus shares

• Both a and b

• None of the above

Which of the following conflict is an agency problem?

• Issue between manager and directors

• Issue between manager and creditors

• Issues between manager and employees

• A and B

The investors that normally have most to gain where the business does well and most to lose if it does badly are

• the debenture holders

• the ordinary shareholders

• the loan notes holders

•   the preference shareholders

Which of the following enjoys limited liability

• A general partnership

• A corporation

• A sole proprietorship

•   None of the above

Business finance involves

• Accounting and marketing decision

• Investing and production

• Management and financing

• Investing and financing decision

Which one is not the Derivative Instrument?

•    Option

•      Interest Swap

• Forward

•     Debenture

A …………………… is an issue of securities to the general public for the first time

•   Initial public offering

• Rights offering

•   General cash offering

•     Seasoned issue