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Finance Mcqs

Finance is vital for which of the following business activity (activities)?

A. Marketing Research
B. Product Pricing
C. Design of marketing and distribution channels
D. All of the given options

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Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?

A. Operating Cash Flows
B. Investing Cash Flows
C. Financing Cash Flows
D. All of the given options

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Cash flow from assets involves which of the following component(s)?

A. Operating cash flow
B. Capital spending
C. Change in net working capital
D. All of the given options

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Financial policy is evaluated by which of the following?

A. Profit Margin
B. Total Assets Turnover
C. Debt-equity ratio
D. None of the given options

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Product costs include which of the following?

A. Selling expenses
B. General expenses
C. Manufacturing overhead
D. Administrative expenses

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Period costs include which of the following?

A. Selling expense
B. Raw material
C. Direct labor
D. Manufacturing overhead

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Earning per share is computed as:

A.   ____________Earning After Tax_____________
          No of common shares outstanding

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Maximizing Shareholder wealth:

A. Relieves the firms responsibility towards society
B. Does not relieve the firm’s responsibility towards society
C. Partially relives the firm’s responsibility towards society
D. None of Them

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Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the:

A. Workers
B. Subordinates
C. Shareholders
D. Employees

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The market price of a firm’s stock represents the focal judgment of all market participants as to the value of the:

A. Particular market
B. Particular firm
C. Particular creditor
D. Particular debtor

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