Question:

Which of the following is a security on a moveable property?

A.

pledge

B.

mortgage

C.

hypothecati on

D.

lien

Answer» c. hypothecati on

Question:

The abbreviation “SIP” in a mutual fund stands for—–

A.

simple investment plan

B.

systematic investment plan

C.

small investment plan

D.

social investment programme

Answer» b. systematic investment plan

Question:

An ideal liquid ratio must be —–

A.

1 : 1

B.

1 : 2

C.

2 : 1

D.

1.33 : 1

Answer» a. 1 : 1

Question:

TCs Ltd. acquires HCL Ltd., MPS of HCL Ltd. Is Rs.20 and EPS is Rs. 5 for an exchange ratio of 1.5: 1, what was the PE ratio used in acquiring HCL Ltd.?

A.

rs. 4

B.

rs. 5

C.

rs. 6

D.

rs. 2.67

Answer» c. rs. 6

Question:

Present Value of a Rupee is always:

A.

equal to its future value.

B.

greater than its future value.

C.

less than its future value

D.

is not related to its future value

Answer» c. less than its future value

Question:

The term “capital structure” refers to:

A.

current assets& current liabilities

B.

long-term debt, preferred stock, and common stock equity

C.

total assets minus liabilities

D.

shareholde rs\ equity

Answer» b. long-term debt, preferred stock, and common stock equity

Question:

A Balance Sheet tallies; because:

A.

it is based on double entry system of accounting

B.

it is based on single entry system of accounting.

C.

all accounts are computerise d.

D.

total of assets equals to the total of liabilities

Answer» a. it is based on double entry system of accounting

Question:

Commercial papers is a type of

A.

fixed coupon bond

B.

unsecured short term debt

C.

equity share capital

D.

governmen t bond

Answer» b. unsecured short term debt

Question:

Loans upto Rs. 1,00,000 against gold and silver ornaments carry risk

A.

50%

B.

10%

C.

100%

D.

20%

Answer» b. 10%

Question:

Which of the following methods focuses the maximisation of wealth of shareholders?

A.

accounting rate of return

B.

payback period

C.

profitability index

D.

internal rate of return

Answer» c. profitability index