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255 questions found · practise this subject as a set Show 20 · 50 per page
#QuestionSubject and topicDifficulty
151 The primary objective of financial management is Business Studies
Financial management
Easy
152 Financial management is concerned with Business Studies
Financial management
Easy
153 Shareholders' wealth is best measured by Business Studies
Financial management
Medium
154 A company decides to borrow heavily, which raises its yearly interest expense. Which part of the firm's finan… Business Studies
Financial management
Medium
155 A finance manager is choosing between two projects. Project X gives slightly higher profit but carries very h… Business Studies
Financial management
Hard
156 Long-term investment decisions are also known as Business Studies
Financial decisions
Easy
157 Which financial decision deals with how much of the profit should be distributed to shareholders? Business Studies
Financial decisions
Easy
158 The promoters of a company do not want to share control with outsiders, so they raise funds through debenture… Business Studies
Financial decisions
Medium
159 A fast-growing company with many profitable expansion projects is most likely to Business Studies
Financial decisions
Medium
160 Why is debt generally considered cheaper but riskier than equity as a source of finance? Business Studies
Financial decisions
Hard
161 Financial planning is best described as Business Studies
Financial planning
Easy
162 Which is one of the twin objectives of financial planning? Business Studies
Financial planning
Easy
163 A company kept a large amount of idle cash raised through a share issue, on which it had to keep paying divid… Business Studies
Financial planning
Medium
164 Financial planning usually begins with which estimate? Business Studies
Financial planning
Medium
165 A firm prepares alternative financial plans for a good, normal and poor monsoon so that it is ready for whate… Business Studies
Financial planning
Hard
166 Capital structure refers to the mix of Business Studies
Capital structure
Easy
167 Trading on equity increases the earnings per share only when Business Studies
Capital structure
Easy
168 A company's EBIT is ₹6,00,000 and its annual interest expense is ₹1,50,000. What is its interest coverage rat… Business Studies
Capital structure
Medium
169 A company with total funds of ₹10,00,000 earns EBIT of ₹2,00,000. It uses ₹5,00,000 of 10% debt and 50,000 eq… Business Studies
Capital structure
Medium
170 A company earns EBIT of ₹80,000 on total funds of ₹10,00,000 (ROI 8%). It is choosing between all equity (1,0… Business Studies
Capital structure
Hard
171 Net working capital is calculated as Business Studies
Fixed and working capital
Easy
172 A company has current assets of ₹8,00,000 and current liabilities of ₹5,00,000. What is its net working capit… Business Studies
Fixed and working capital
Easy
173 Which type of business usually needs the largest amount of fixed capital? Business Studies
Fixed and working capital
Medium
174 A woollen garment maker needs much more working capital in the months before winter. Which factor explains th… Business Studies
Fixed and working capital
Medium
175 Firm P sells only on cash and gets 60 days' credit from suppliers. Firm Q gives 90 days' credit to customers … Business Studies
Fixed and working capital
Hard
176 Which of the following is a function of financial markets? Business Studies
Concept of financial markets
Easy
177 The money market deals in funds for a period of Business Studies
Concept of financial markets
Easy
178 An investor who needs cash urgently sells her shares on the stock exchange the same day. Which function of fi… Business Studies
Concept of financial markets
Medium
179 Financial markets help direct household savings to businesses that need funds for productive investment. This… Business Studies
Concept of financial markets
Medium
180 Why do financial markets reduce the cost of transactions for investors? Business Studies
Concept of financial markets
Hard
181 A treasury bill is issued by the Business Studies
Money market
Easy
182 Which money market instrument is used mainly for interbank borrowing for one to fifteen days? Business Studies
Money market
Easy
183 A large company with a high credit rating issues an unsecured promissory note for 90 days to meet its short-t… Business Studies
Money market
Medium
184 Why is a treasury bill called a zero-coupon bond? Business Studies
Money market
Medium
185 A company issues commercial paper to pay the expenses of a share issue it plans to make in the coming months.… Business Studies
Money market
Hard
186 The market in which new securities are issued for the first time is the Business Studies
Capital market
Easy
187 A company offers new shares to its existing shareholders in proportion to their present holdings. This method… Business Studies
Capital market
Easy
188 Mr Shah buys 100 shares of a listed company from another investor through the stock exchange. Which statement… Business Studies
Capital market
Medium
189 A company sells its new securities to a few large institutional investors and selected individuals instead of… Business Studies
Capital market
Medium
190 Which of the following is true of the capital market compared with the money market? Business Studies
Capital market
Hard
191 What is dematerialisation? Business Studies
Stock exchange
Easy
192 Which of the following is a depository in India? Business Studies
Stock exchange
Easy
193 After a broker carries out a client's order to buy shares, he gives the client a document recording the detai… Business Studies
Stock exchange
Medium
194 Through a stock exchange, many ordinary people have started investing in shares of companies. Which function … Business Studies
Stock exchange
Medium
195 Ms Kaur wants to start buying shares. Which of these is the correct first step in the trading procedure? Business Studies
Stock exchange
Hard
196 SEBI got statutory powers through which law? Business Studies
SEBI
Easy
197 Prohibiting insider trading is which type of SEBI function? Business Studies
SEBI
Easy
198 SEBI organises training programmes for brokers and other intermediaries of the securities market. This is a Business Studies
SEBI
Medium
199 A company director buys a large number of his company's shares just before a confidential announcement of a b… Business Studies
SEBI
Medium
200 SEBI registers stock brokers and merchant bankers and conducts audits of stock exchanges. These belong to whi… Business Studies
SEBI
Hard