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Business Finance

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The IDBI was established in Factoring

a)

Factoring

b)

Forfaiting

c)

Both a & b

d)

None

2.

Maximises the value of firm is

a)

Risk

b)

Minimum

c)

Maximum

d)

Optimum

3.

The method of raising shirt term finance through accounts receivable credit offered by commercial banks is

a)

Installment Credit

b)

Trade Credit

c)

Factoring

d)

None

4.

A technique uses in comparative analysis of financial statement is

a)

Graphical analysis

b)

Preference analysis

c)

Common stock analysis

d)

None

5.

What decision involves make-up of the right-hand side of the balance sheet

a)

Asset management

b)

Investment

c)

Financing

d)

None

6.

The offering of new shares by the company in the primary market to the existing shareholders is known as

a)

Right issue

b)

Private placement

c)

Preferential share

d)

None

7.

Which of the following is not a feature of an optimal capital structure?

a)

Flexibility

b)

Safety

c)

Profitability

d)

Control

8.

Industrial Finance Corporation of India (IFCI) was established in

a)

July, 1948

b)

July, 1950

c)

July, 2000

d)

July, 1999

9.

While evaluating capital investment proposal, the time value of money is considered in case of,

a)

a. ARR method

b)

b. Discounted Cash flow method

c)

c. Pay-back method

d)

d. All

10.

A firm should select capital structure that

a)

a. Produces the highest cost of capital

b)

b. Maximise the value of the firm

c)

c. Minimises taxes

d)

d. is fully unlevered