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WorksheetsBusiness finance
Total questions: 31
Worksheet time: 37mins
Finance Functions are
Planning for funds
Raising of funds
Allocation of resources
All the above
The Primary goal of financial management is
to maximise return
to minimize risk
to maximize the wealth of owners
to maximize profit
In his traditional role, the finance manager is responsible for
Proper utilisation of funds
Arrangement of financial resources
Acquiring capital assets of the organisation
Efficinet management of capital
The controller's responsibilities are primarily in nature, while the treasurer's responsibilities are primarily related to .
operational; financial management
financial management; accounting
accounting; financial management
financial management; operations
External sources of finance do not include:
Retained earnings
Overdraft
Leasing
Debentures
Under the factoring arrangement, the factor
Produces and distributes the goods or services
Makes the payment on behalf of the client
collects the client's debt or account receivables
Transfer the goods from one place to another
Which of the following is not an advantage of issuing bonds?
management retains control
interest paid is tax deductable
Bonds are only a temporay source of finance
none of the above
The matiurity period of ICDs range from
1 year to 2 year
one day to 6 months
up to 1 year
1 year to 5 year
------ type of financing is usually done for financing high risky businesses
leasing
veture capital
hire purchase
factoring
Reason for time value of money
inflation
reinvestment purpose
uncertainity
All the above
The process of calculating present value of future cash flows
compounding
discounting
both compounding and discounting
none of the above
With continuous compounding at 8 percent for 20 years, what is the approximate future value of a 20,000 initial investment?
(a)
Which of the following would be consistent with a more aggressive approach to financing working capital?
Financing short-term needs with short-term funds.
Financing permanent inventory buildup with long-term debt.
Financing seasonal needs with short-term funds.
Financing some long-term needs with short-term funds.
Permanent working capital
varies with seasonal needs.
includes fixed assets.
is the amount of current assets required to meet a firm's long-term minimum needs.
includes accounts payable.
Net working capital refers to
total assets minus fixed assets.
current assets minus current liabilities.
current assetsets minus inventories.
current assets
______ refers to a firm holding some cash to meet its routine expenses that are
incurred in the ordinary course of business.
Speculative motive
Transaction motive
Precautionary motive
Compensating motive
(a)
practical application of time value of money
preparation of loan repayment schedule
sinking fund creation
valuation problems
all the above
what will be the present value of Rs.40,00,000 receivable at the end of 3 years at an interest rate 7%
(a)
preference shareholders
preferential right to receive dividend
the rate of dividend is fixed
have voting rights
rate of dividend is variable
