_______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure??
A. Financial risk
B. Portfolio risk
C. Operating risk
D. Market risk
Category: Finance Mcqs
Which of the following equation is known as Cash Flow (CF) identity??
A. CF from Assets = CF to Creditors – CF to Stockholder
B. CF from Assets = CF to Stockholders – CF to Creditors
C. CF to Stockholders = CF to Creditors CF from Assets
D. CF from Assets = CF to Creditors CF to Stockholder
In which form of Business, owners have limited liability??
A. sole proprietorship
B. partnership
C. joint stock company
D. none of the above Read More about this Mcq
Which of the following statement is TRUE regarding debt??
A. Debt is an ownership interest in the firm.
B. Unpaid debt can result in bankruptcy or financial failure.
C. Debt provides the voting rights to the bondholders.
D. Corporation’s payment of interest on debt is fully taxable.
In which type of market, new securities are traded??
A. Primary market
B. Secondary market
C. Tertiary market
D. None of the given options
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
The principal amount of a bond at issue is called____________??
A. Par value
B. Coupon value
C. Present value of an annuity
D. Present value of a lump sum
A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm??
A. 12%
B. 25%
C. 40%
D. 60% Read More about this Mcq
Which of the following item provides the important function of shielding part of income from taxes??
A. Inventory
B. Supplies
C. Machinery
D. Depreciation Read More about this Mcq
