MCQ (FINANCIAL MANAGEMENT )

1.Gross working capital refers to firms investment in____?

• A. Current liability

• B. Working capital

• C. Current assets

• D. None of these

2.The cost of capital plays a central role in FM because it provides link between____&financial decision of a firm?.

• A. Capital structure

• B. Investment

• C. Cash

• D. None of these

3.Under conventional method ____ enters into a calculation of working capital?.

• A. Cash

• B. Current assets

• C. Inventories

• D. Current liabilities

4.Capital budgeting technique is a fundamental requirement of ____?

• A. Cost of debt

• B. Cost of capital

• C. Capital structure

• D. All the above

5.optimum capital structure is at which______is minimum and value of firm is maximum?

• A. EBIT

• B. Weighted average cost of capital

• Tax rate

• None of these

6.____ model of cash management attempts to minimization of total cost?

• A. S.F Bradley

• B. Baumal's

• C. Miller-orr

7. What is EOQ?

• A. Cost of an order

• B. Cost of stock

• C. Optimum order size

• D. None of them

8. ____ is a motive of holding cash?

• A. Transaction motive

• B. Precaution motive

• C. Capital investment

9. A B C analysis is useful for analyzing the inventories?

• A. Based on their quality

• B. Based on physical volume

• C. Based on their usage and value

• D. All the above

10. If the if the company has ideal fund that means there is large amount of___?

• A. Cost of capital

• B. Cash

• C. Working capital

• D. Inventory