Financial Management B-103
Paper-III
IIBM Institute of Business Management
Financial Management
Subject Code –B-103
Section A: Objective Type
PART ONE
Multiple choices Question With Single Response:
Q.1 The approach focused mainly on the financial problems of corporate enterprise. a. Ignored non-corporate enterprise b. Ignored working capital financing c. External approach d. ignored routine problems
Ans.
Q 2 These are those shares, which can be redeemed or repaid to the holders after a lapse of the stipulated period. a . Cumulative preference shares b. Non-cumulative preference shares c. Redeemable preference shares d. Perpetual shares
Ans.
Q 3. This type of risk arise from changes in environmental regulations, zoning requirement, fees, licenses and most frequently taxes. a. Political risk b. Domestic risk c. International risk d. industry risk
Ans.
Q 4. It is the cost of capital that is expected to raise funds to finance a capital budget or investment proposal. a. Future cost b. Specific cost c. Spot cost d. Book cost
Ans.
Q 5. The concept is helpful in formulating a sound & economical capital structure for a firm. a. Financial performance appraisal b. Investment evaluation c. Designing optimal corporate capital structure d. None of the above
Ans.
Q 6. It is the minimum required rate of return needed to justify the use of capital. a. From investors b. Firms point c. Capital expenditure point d. Cost of capital
Q. 7 . It arises when there is a conflict of interest among owners, debenture holders and the management. a. Seasonal variation b. Degree of competition c. Industry life cycle d. Agency costs
Q 8. Some guidelines on shares & debentures issued by the government that are very
IIBM Institute of Business Management
Financial Management
Subject Code –B-103
Section A: Objective Type
PART ONE
Multiple choices Question With Single Response:
Q.1 The approach focused mainly on the financial problems of corporate enterprise. a. Ignored non-corporate enterprise b. Ignored working capital financing c. External approach d. ignored routine problems
Ans.
Q 2 These are those shares, which can be redeemed or repaid to the holders after a lapse of the stipulated period. a . Cumulative preference shares b. Non-cumulative preference shares c. Redeemable preference shares d. Perpetual shares
Ans.
Q 3. This type of risk arise from changes in environmental regulations, zoning requirement, fees, licenses and most frequently taxes. a. Political risk b. Domestic risk c. International risk d. industry risk
Ans.
Q 4. It is the cost of capital that is expected to raise funds to finance a capital budget or investment proposal. a. Future cost b. Specific cost c. Spot cost d. Book cost
Ans.
Q 5. The concept is helpful in formulating a sound & economical capital structure for a firm. a. Financial performance appraisal b. Investment evaluation c. Designing optimal corporate capital structure d. None of the above
Ans.
Q 6. It is the minimum required rate of return needed to justify the use of capital. a. From investors b. Firms point c. Capital expenditure point d. Cost of capital
Q. 7 . It arises when there is a conflict of interest among owners, debenture holders and the management. a. Seasonal variation b. Degree of competition c. Industry life cycle d. Agency costs
Q 8. Some guidelines on shares & debentures issued by the government that are very