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Finance Mcqs

When the market’s required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:

A. Premium
B. Discount
C. Par
D. Cannot be determined without more information

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Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?

A. Sole-proprietorship
B. Partnership
C. Corporation
D. None of the given options

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Which of the following ratios are particularly interesting to short term creditors?

A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios

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Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):

A. Operating activity
B. Investing activity
C. Financing activity
D. None of the given options

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If a firm uses cash to purchase inventory, its quick ratio will?

A. Increase
B. Decrease
C. Remain unaffected
D. Become zero

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Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?

A. Liquidity Ratios
B. Leverage Ratios
C. Profitability Ratios
D. Market Value Ratios

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Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?

A. Fluctuations Risk
B. Interest Rate Risk
C. Real-Time Risk
D. Inflation Risk

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How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?

A. 6 years
B. 12 years
C. 24 years
D. 48 years

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Which of the following is measured by retention ratio?

A. Operating efficiency
B. Asset use efficiency
C. Financial policy
D. Dividend policy

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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 Partnerhsip
D. Corporation

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