Question:

Rights issue is also called as —–

A.

privileged subscription.

B.

equity shares

C.

stock dividend.

D.

bonus shares

Answer» a. privileged subscription.

Question:

Members of recognised stock exchanges are termed as

A.

brokers

B.

underwriters

C.

shareholder s

D.

lead managers.

Answer» a. brokers

Question:

In weighted average cost of capital, rising in interest rate leads to-

A.

increase in cost of debt

B.

increase the capital structure

C.

decrease in cost of debt

D.

decrease the capital structure

Answer» a. increase in cost of debt

Question:

Goodwill is an example of —- asset

A.

tangible.

B.

intangible.

C.

fictitious

D.

current

Answer» b. intangible.

Question:

Which of the following is not included in incremental A flows?

A.

opportunity costs

B.

sunk costs

C.

change in working capital

D.

inflation effect

Answer» a. opportunity costs

Question:

Cash credit and overdrafts is considered as NPA when is remains out of order for more than:

A.

90 days

B.

30 days

C.

60 days

D.

45 days

Answer» a. 90 days

Question:

…… increases the number of shares without actually increasing the paid – up value of the share capital.

A.

consolidation of shares.

B.

stock split- ups

C.

bonus issue

D.

rights issue

Answer» b. stock split- ups

Question:

Payback period Technique is based on

A.

all cash flows

B.

only higher cash flows

C.

earlier cash flows

D.

selected cash flows

Answer» c. earlier cash flows

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