Business Finance MCQs

Business Finance MCQs

(1) In which type of business all owners share in gains and losses and all have unlimited liability for all business debts . . . .

A. Sole proprietorship
B. General Partnership
C. Limited Partnership
D. Corporation
E. All of them
F. none of these

Answer - Click Here:
B

(2) Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods . . . .
A. Ordinary annuity
B. Annuity due
C. Perpetuity
D. A and C
E. None of the given options

Answer - Click Here:
A

(3) During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increased by Rs. 8,000. What will be the amount of cash received from customers for the period  . . . .
A. Rs. 33,000
B. Rs. 25,000
C. Rs. 17,000
D. Rs. 8,000
E. Rs. 20,000
F. none of these

Answer - Click Here:
C

(4) Is concerned with the Acquisition financing and management of assets with some overall goal in mind. . . .

A. Financial management
B. Profit maximization
C. Agency theory
D. Social responsibility
E. A and B
F. none of these

Answer - Click Here:
A

(5) Annual cash dividends divided by annual earnings or alternatively dividends per share divided by earning per share is termed as . . . .
A. Earning per share ratio
B. Proposed dividend ratio
C. Dividend payout ratio
D. Expected dividend ratio
E. All of them
F. none of these

Answer - Click Here:
C

(6) An individual authorized by another person, called the principle to act on the latter’s on behalf is known as . . . .

A. Agent
B. Servant
C. Subordinate
D. Assistant
E. B and C
F. none of these

Answer - Click Here:
A

(7) Quick Ratio is also known as . . . .

A. Current Ratio
B. Acid-test Ratio
C. Cash Ratio
D. None of the given options
E. All of them

Answer - Click Here:
B

(8) Which of the following item provides the important function of shielding part of income from taxes are  . . . .
A. Inventory
B. Supplies
C. Machinery
D. Depreciation
E. Taxation
F. None of these

Answer - Click Here:
D

(9) The process of determining the present value of a payment or a stream of payments that is to be received in the future is  . . . .
A. Discounting
B. Compounding
C. Factorization
D. Accounting
E. A and B
F. none of these

Answer - Click Here:
A

(10) In which form of Business owners have limited liability is  . . . .
A. Sole Proprietorship
B. Partnership
C. Joint Stock Company
D. Entrepreneurs
E. A and B
F. None of these

Answer - Click Here:
C

(11) All the constituencies with a stake in the fortunes of the company are termed is  . . . .
A. Stakeholders
B. Directors
C. Chief executives
D. Subordinates
E. Manager
F. None of these

Answer - Click Here:
A

(12) Corporate governance encompasses the relationship among a company’s . . . .
A. Shareholders and board of director
B. Board of directors and senior management
C. Shareholders and senior management
D. Shareholders  the board of directors and senior management
E. All of them
F. none of these

Answer - Click Here:
D