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Business Finance MCQ, Business finance is in the form of ________, Public finance ii) Personal finance iii) corporate finance iv)none, Business finance deals with________, Administrative problem ii) managerial problem iii) labour problem iv) financial problem, Investment decision involves ________, Raising funds ii) dividend payment iii) utilisation of funds iv) none, Investment in fixed asset is made for ________, Short-term ii) long-term iii) season iv) none, ________ department has to take decisions regarding working capital, Production ii) finance iii) marketing iv) personnel, An important indicator of over-capitalisation is ________, Low earnings ii) more earnings iii) low capital, iv) more capital, Retained earnings for business purpose are called ________, Own fund ii) internal accruals iii) borrowed funds iv) none, Over -Capitalisation means________, Shortage of capital ii) excess of capital iii) surplus funds iv) none, In case of under-capitalisation there is ________, Surplus ii) deficit iii) none iv) shortage, The value of shares remaining unchanged is called ______, Real value ii) face value iii) book value iv) par value, Capital structure includes ______, Only debt ii) only equity iii) Only preference shares, iv) debt and equity, Ideal capital structure always tends to minimize _______, Cost of financing ii) interest rates iii) dividend rate iv) gross profit, _______ capital always involves a risk, Cost of financing ii) interest rates iii) dividend rates iv) gross profit, ________ policy of the government affects the capital structure of the company., Taxation ii) Financial iii) Human Resource iv) Transport, Trading on equity is also known as________, Owned capital ii) borrowed capital iii) leverage iv) working capital, Dividend payable on preference shares is _______, Fixed ii) fluctuating iii) static iv) none, Term loan is a source of ________ term finance., Short ii) long iii) medium iv) short and medium, Interest payable on debenture is _______, Optional ii) compulsory iii) voluntary iv) none, ________ shareholders are called residual claimants of the company., Preference ii) bonus iii) equity iv) right, An individual to subscribe for the capital of the company is called ________, Notice ii) statement iii) prospectus iv) advertisement, The long-term risk capital is called _________, Equity capital ii) venture capital iii) debenture capital iv) venture capital, Venture capital is essentially in the form of _______ shares., Preference ii) equity iii) deferred iv) sweat, In case of venture capital, the maximum debt-equity ratio shall be _______, 2:1:4 ii) 1:1:5 iii)5:1:1 iv) 2:2:1, The practice of leasing had its origin in the ________ civilisation., Sumerian ii)Roman iii) European iv) Indian, Financial lease is ________ term agreement., Short ii) long iii) medium iv) life, 26) Operating lease is ________ term agreement., Life ii) short iii) long iv) medium, Project Finance is a form of _____ financing, Long-term ii) short term iii) operating iv) equipment, Project finance is always ________ loan., Free ii) guided iii) mortgaged iv) equipment, Project evaluation ensures________ under project., Profitability ii) soundness of technology iii) effective utilisation of resources iv) feasibility of investment decision, ICICI is essentially a ________, Investment institution ii) financial institution iii) underwriting institution iv) none, Working capital is the surplus of current asset over ________, Capital ii) fixed asset iii) current liabilities iv) sundry asset, The cost of trade credit is generally________, High ii) fluctuating iii) low iv) high, An arrangement by which bank allow customer to borrow upto certain limit is called ________, Pledge ii) overdraft iii) cash credit iv) none, Commercial paper was introduced in _____, 1990 ii)2000 iii) 2005 iv) 1980, A company can accept deposits for a minimum period of ________, Three months ii) twelve months iii) six month iv) twenty sir months, The officer who provides cash and liquidity is called _____, General manager ii) finance manager iii) receivable management iv) none, Marketable securities are called ________, Near-cash assets ii) cash asset iii)current asset iv) none, The process pf collecting and controlling payment is called _____, Cash management ii) inventory management iii) receivables management iv) none, More credit sales are possible, if the policy is, Liberal ii) stringent iii) economical iv) none, Goods in the process of production are ________, Finished goods ii) raw-materials iii) work in progress iv) none, Fill in the blanks, Finance is the science of _______, ______ manager is responsible for managing funds, ______ decision is relating to the investment of funds of the company ., _____ is an art of recording business transactions., Shortage of capital may lead to _____ capitalisation, In ______ theory capitalisation is based on expected earnings, ____ value of share depends on demand and supply in stock market, If the book value and real value of shares are identical , it is called ______ capitalisation, ______ includes equity and debts used in the business., ______ capital always involves a risk, Trading on equity is also known as ______, Debt equity ratio is used for measuring the intensity of _____, Cost of capital remains minimum if maximum funds are raised though_____, ______ rate of dividend is paid preference shareholders, ______ shares are issued for long-term financing, ______Debentures are repayable after certain period., Sweat shares are in the form of ______ shares., The option given given to employees to buy the shares is called ______, Venture capital is _____ finance., Venture capital is in the form of_____ contribution, Venture capital is in generally provided to _______ technocrats., Venture capital has _____ degree of involvement in the project, Leasing keeps the cash flow more_____, Leasing is also termed as ______leasing, The corresponding risk of equipment (assets) is associated under ____ lease, Project finance approach is adopted first by_____ in India., Project loan is sanctioned against _____ of the project report., Sponsorer is the ______ of the project., ______ Capital is needed for day to day business of the firm, ______ is the interest-free source of financing, ______ deposits do not create any charge on the assets of the company, Inter-corporate deposit is the deposits made by _____ body., Industrial Finance Corporation if India is a ____ level institution, Cash is an _____, Cash _____ is prepared for future., The point at which optimum credit policy occurs is called _____, ____ management deals with stock of goods, The level at which new stock is ordered is known as _____ level