MBA finance interview questions and answers
These MCQs are starting from 31. First 30 MCQs are on the previous page. To read the previous MCQs – Click Here.
31. Which of the following ratios are particularly interesting to short term creditors? Select the right option from the following.
A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios
E. All of these
F. None of these
32.Financial policy is evaluated by __________. Select right option from the following.
A. Profit Margin
B. Total Assets Turnover
C. Debt-equity ratio
D. None of the given options
E. All of these
33.Mr. Y and Mr. Z are going to share their capital to run a business. They are going to employ _________type of business? Select the right option from the following.
A. Sole-proprietorship
B. Partnership
C. Corporation
D. None of the given options
E. All of these
34. When the market’s required rate of return for a particular bond is much less than its coupon rate the bond is selling at___________. Select the right option from the following.
A. Premium
B. Discount
C. Par
D. Cannot be determined without more information
E. All of these
F. None of these
35.__________ statement is considered as the accountant’s snapshot of a firm’s accounting value as of a particular date? Select the right option from the following.
A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Retained Earning Statement
E. All of these
F. None of these
36.Finance is vital for_________ business activity (activities)? Select right option from the following.
A. Marketing Research
B. Product Pricing
C. Design of marketing and distribution channels
D. All of the given options
E. All of these
F. None of these
37. The most important item that can be extracted from financial statements is the actual ________ of the firm. Select the right option from the following.
A. Net Working Capital
B. Cash Flow
C. Net Present Value
D. None of the given options
E. All of these
38. A firm has given out Rs. 150,000 as dividends from its net income of Rs. 250,000 ______ is retention ratio for the firm? Select the right option from the following.
A. 12%
B. 25%
C. 40%
D. 60%
E. All of these
F. None of these
39. If a firm’s debt ratio is 45%, this means _____ of the firm’s assets are financed by equity financing. Select the right option from the following.
A. 50%
B. 55%
C. 45%
D. Cannot be determined without more information
E. All of these
F. None of these
40. Select the ratios which are NOT from the set of Asset Management Ratios?
A. Inventory Turnover Ratio
B. Receivable Turnover
C. Capital Intensity Ratio
D. Return on Assets
E. All of these
F. None of these
41.________statement about bond ratings is TRUE?
A. Bond ratings are typically paid for by a company’s bondholders.
B. Bond ratings are based solely on information acquired from sources other than the bond issuer.
C. Bond ratings represent an independent assessment of the credit-worthiness of bonds.
D. None of the given options
E. All of these
F. None of these
42.If you save Rs. 5,000 with a bank at an interest rate of 8%, _______ be the worth of your amount after 4 years if interest is compounded annually?
A. Rs. 5,400
B. Rs. 5,810
C. Rs. 6,600
D. Rs. 6,802
E. All of these
F. None of these
43.Which of the following statement is TRUE regarding debt?
A. Debt is an ownership interest in the firm.
B. Unpaid debt can result in bankruptcy or financial failure.
C. Debt provides the voting rights to the bondholders.
D. Corporation’s payment of interest on the debt is fully taxable.
E. All of these
F. None of these
44. A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. The total worth of the firm’s assets will be?
A. Rs. 300,000
B. Rs. 500,000
C. Rs. 800,000
D. Rs. 1100,000
E. All of these
F. None of these
45.___________ measure reveals how much profit a company generates with the money shareholders have invested.
A. Profit Margin
B. Return on Assets
C. Return on Equity
D. Debt-Equity Ratio
E. All of these
F. None of these
46.If you have Rs. 850 and you plan to save it for 4 years with an interest rate of 10%_______ be the future value of your savings?
A. Rs. 1,000
B. Rs. 1,244
C. Rs. 1,331
D. Rs. 1,464
E. All of these
F. None of these
47.In case of international business ___________factor(s) must be considered?
A. Role of foreign exchange
B. Balance of payments
C. Attitude of Governments
D. All of the given options
E. All of these
F. None of these
48._________ refers to the difference between the sale price and the cost of inventory?
A. Net loss
B. Net worth
C. Markup
D. Markdown
E. All of these
F. None of these
49.________following make a broader use of accounting information.
A. Accountants
B. Financial Analysts
C. Auditors
D. Marketers
E. All of these
F. None of these
50. Rule of 72 for finding the number of periods is fairly applicable to _______range of discount rates. select from the following.
A. 2% to 8%
B. 4% to 25%
C. 5% to 20%
D. 10% to 50%
E. All of these
F. None of these
51.A portion of profits which a company distributes among its shareholders is called___________.
A. Dividends
B. Retained Earnings
C. Capital Gain
D. None of the given options
E. All of these
F. None of these
52.what 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. All of these
F. None of these
53.Having some overall goal in mind, financial management is concerned with______?
A. Acquisition of assets
B. Financing of assets
C. Management of assets
D. All of them
E. All of these
F. None of these
54. The investment decision is the most important of the firm’s three major decisions when it comes to to_______. select from the following
A. Value creation
B. Value addition
C. Value proposition
D. Value deletion
E. All of these
F. None of these
55. Annual cash dividends divided by annual earnings; or alternatively, dividends per share divided by earning per share is termed as__________ _. select from the following.
A. Earning per share ratio
B. Proposed dividend ratio
C. Dividend payout ratio
`D. Expected dividend ratio
E. All of these
F. None of these
