MCQOPTIONS
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MCQOPTIONS
This section includes 2436 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 851. |
Operating leverage examines. |
| A. | he effect of the change in the quantity on EBIT |
| B. | he effect of the change in EBIT on the EPS of the company |
| C. | he effect of the change in output to the EPS of the company |
| D. | he effect of change in EPS on the output of the company |
| Answer» B. he effect of the change in EBIT on the EPS of the company | |
| 852. |
The Markowitz model identifies the efficient set of portfolios, which offers the ____________. |
| A. | ighest return for any given level of risk or the lowest risk for any given level of return |
| B. | east-risk portfolio for a conservative, middle-aged investor |
| C. | ong-run approach to wealth accumulation for a young investor |
| D. | isk-free alternative for risk-averse investors |
| Answer» B. east-risk portfolio for a conservative, middle-aged investor | |
| 853. |
Degree of financial leverage is a measure of relationship between ___________. |
| A. | PS and EBIT |
| B. | BIT and quantity produced |
| C. | PS and quantity produced |
| D. | PS and sales |
| Answer» B. BIT and quantity produced | |
| 854. |
Price per share is Rs 30 and an earning per share is Rs 3.5 then price for earning ratio would be |
| A. | .57 times |
| B. | .57% |
| C. | .11 times |
| D. | 1.00% |
| Answer» B. .57% | |
| 855. |
Net income available to stockholders is Rs 125 and total assets are Rs 1,096 then return on common equity would be |
| A. | .11% |
| B. | 1.40% |
| C. | .12 times |
| D. | 2.00% |
| Answer» C. .12 times | |
| 856. |
A technique uses in comparative analysis of financial statement is |
| A. | raphical analysis |
| B. | reference analysis |
| C. | ommon size analysis |
| D. | eturning analysis |
| Answer» D. eturning analysis | |
| 857. |
The relationship between potential unsystematic risk and reward is given by ___________. |
| A. | xcess return to beta ratio |
| B. | xcess return to security |
| C. | xcess return to security |
| D. | xcess return to beta square ratio |
| Answer» B. xcess return to security | |
| 858. |
_________ is equal to (common shareholders' equity/common shares outstanding). |
| A. | ook value per share |
| B. | iquidation value per share |
| C. | arket value per share |
| D. | obin's Q |
| Answer» B. iquidation value per share | |
| 859. |
The value of bond depends on ____________. |
| A. | he coupon rate |
| B. | ears to maturity |
| C. | xpected yield to maturity |
| D. | ll the above |
| Answer» E. | |
| 860. |
In BSE shares are divided into_______________. |
| A. | wo categories |
| B. | hree categories |
| C. | our categories |
| D. | ive categories |
| Answer» C. our categories | |
| 861. |
A growth industry is defined as ____________. |
| A. | n industry with 15% rate of growth per annum |
| B. | n industry where demand for its product is growing |
| C. | n industry with high capital investment |
| D. | n industry with average growth higher than the growth of the economy |
| Answer» E. | |
| 862. |
In the weekly efficient market, the stock price reflects. |
| A. | he company's financial performance |
| B. | he past price of the scrip |
| C. | he demand for the scrip |
| D. | he past price and traded volumes |
| Answer» E. | |
| 863. |
Which of the following is / are assumption behind the realized yield approach? |
| A. | he yield earned by investors has been, on average, in conformity with their expectations |
| B. | he dividends will continue growing at a constant rate forever |
| C. | he market price will continue growing at a constant rate forever |
| D. | oth a and b |
| Answer» E. | |
| 864. |
________________ factors lead to activity of stock market. |
| A. | oney supply |
| B. | er capita income |
| C. | nemployment rate |
| D. | anufacturing and Trade |
| Answer» B. er capita income | |
| 865. |
Which of the following is not an assumption in Miller and Modigliani approach? |
| A. | here are no corporate or personal income tax |
| B. | nvestors are assumed to be rational and behave accordingly |
| C. | here is no corporate tax though there are personal income tax |
| D. | apital markets are perfect |
| Answer» E. | |
| 866. |
Which of the following is not an assumption in the Miller & Modigliani approach? |
| A. | here are no transaction costs |
| B. | ecurities are infinitely divisible |
| C. | nvestors have homogeneous expectations |
| D. | ll the firms pay tax on their income at the same rate |
| Answer» E. | |
| 867. |
International investing is________________. |
| A. | s only practical for institutional investors |
| B. | ncreases the overall risk of a stock portfolio |
| C. | lways leads to higher returns than a domestic portfolio |
| D. | an reduce risk due to increased diversification |
| Answer» D. an reduce risk due to increased diversification | |
| 868. |
The overall capitalization rate and the cost of debt remain constant for all degrees of leverage. This is pronounced by __________. |
| A. | raditional approach |
| B. | et operating income approach |
| C. | et income approach |
| D. | M approach |
| Answer» D. M approach | |
| 869. |
The growth in book value per share shows the_____________. |
| A. | ise in share price |
| B. | ncrease in physical asset of the firm |
| C. | ncrease in net worth |
| D. | rowth in reserves |
| Answer» E. | |
| 870. |
The value of EBIT at which EPS is equal to zero is known as ____________. |
| A. | reak-even point |
| B. | inancial break-even point |
| C. | perating break-even point |
| D. | verall break-even point |
| Answer» C. perating break-even point | |
| 871. |
__________ is the most important investment decision because it determines the risk-return characteristics of the portfolio. |
| A. | edging |
| B. | arket timing |
| C. | erformance measurement |
| D. | sset allocation |
| Answer» E. | |
| 872. |
The measure of business risk is __________. |
| A. | perating leverage |
| B. | inancial leverage |
| C. | otal leverage |
| D. | orking capital leverage |
| Answer» B. inancial leverage | |
| 873. |
The Accounting period cycle of NSE is___________. |
| A. | ednesday to next Tuesday |
| B. | uesday to next Wednesday |
| C. | onday to next Friday |
| D. | ednesday to next Wednesday |
| Answer» B. uesday to next Wednesday | |
| 874. |
Which, among the following, are common misconceptions about cost of capital? |
| A. | epreciation-generated funds have no cost |
| B. | ost of capital is low if a project is heavily debt-financed |
| C. | ost of equity is equal to the dividend rate |
| D. | ll of the above |
| Answer» E. | |
| 875. |
Over the Counter Exchange of India was started after the role model of_________. |
| A. | ASAQ |
| B. | ASAQ |
| C. | ASDAQ& JASDAQ |
| D. | SE |
| Answer» D. SE | |
| 876. |
Mumbai stock exchange was recognized on a permanent basis in___________. |
| A. | 950 |
| B. | 956 |
| C. | 957 |
| D. | 965 |
| Answer» D. 965 | |
| 877. |
The market value of the firm is the result of __________. |
| A. | ividend decisions |
| B. | orking capital decisions |
| C. | apital budgeting decisions |
| D. | rade-off between cost and risk |
| Answer» E. | |
| 878. |
The value of a derivative security _______. |
| A. | epends on the value of the related primitive security |
| B. | an only cause increased risk |
| C. | s unrelated to the value of the related primitive security |
| D. | s worthless today |
| Answer» B. an only cause increased risk | |
| 879. |
Excess working capital results in ________. |
| A. | lock of cash |
| B. | oosing interests |
| C. | ack of production |
| D. | ack of smooth flow of production |
| Answer» B. oosing interests | |
| 880. |
The last step in fundamental analysis is__________. |
| A. | conomic analysis |
| B. | ndustry analysis |
| C. | ompany analysis |
| D. | echnical analysis |
| Answer» E. | |
| 881. |
If an investor searches for patterns in security returns by examining various techniques applied to a set of data, this is known as__________. |
| A. | undamental analysis |
| B. | echnical analysis |
| C. | ata mining |
| D. | andom-walk theory |
| Answer» C. ata mining | |
| 882. |
______________ is the distribution of the profits of a company among its shareholders. |
| A. | hares |
| B. | nterest |
| C. | ividend |
| D. | ommission |
| Answer» D. ommission | |
| 883. |
The random walk hypothesis is most related to the___________. |
| A. | eak-form EMH |
| B. | emi strong-form EMH |
| C. | emi weak-form EMH |
| D. | trong-form EMH |
| Answer» B. emi strong-form EMH | |
| 884. |
Dividend policy of a firm affects both the long-time financing and __________ wealth. |
| A. | wners |
| B. | reditors |
| C. | ebtor |
| D. | hareholders |
| Answer» E. | |
| 885. |
Having defined working capital as current assets, it can be further classified according to __________. |
| A. | inancing method and time |
| B. | ate of return and financing method |
| C. | ime and rate of return |
| D. | omponents and time |
| Answer» E. | |
| 886. |
The highest level of market efficiency is_____________. |
| A. | eak form efficiency |
| B. | emi-strong form efficiency |
| C. | andom walk efficiency |
| D. | trong form efficiency |
| Answer» E. | |
| 887. |
The bonus issue is made to make the nominal value and the __________ value of the shares of the company. |
| A. | ace |
| B. | arket |
| C. | tock |
| D. | eal |
| Answer» C. tock | |
| 888. |
The bonus issue is permitted to be made out of __________ and premium collected in cash. |
| A. | ree reserves |
| B. | ree interest |
| C. | ree bonus |
| D. | ree cash dividend |
| Answer» B. ree interest | |
| 889. |
___________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas. |
| A. | ortfolio management |
| B. | arket timing |
| C. | omentum strategy |
| D. | ector rotation |
| Answer» E. | |
| 890. |
The return after the pay off period is not considered in case of __________. |
| A. | ayback period method |
| B. | nterest rate method |
| C. | resent value method |
| D. | iscounted cash flow method |
| Answer» B. nterest rate method | |
| 891. |
The price to book value ratio tends to be close for_____________. |
| A. | igh-tech companies |
| B. | anks |
| C. | tilities |
| D. | ervice companies |
| Answer» C. tilities | |
| 892. |
To whom does the Treasurer most likely report? |
| A. | hief Financial Officer |
| B. | ice President of Operations |
| C. | hief Executive Officer |
| D. | oard of Directors |
| Answer» B. ice President of Operations | |
| 893. |
The amount of the temporary working capital __________. |
| A. | eeps on fluctuating from time to time |
| B. | emains constant for all times |
| C. | inanced through long term services |
| D. | one of the above. |
| Answer» B. emains constant for all times | |
| 894. |
Under the P/E model, stock price is a product of_____________. |
| A. | PS and DPS |
| B. | /E ratio and EPS |
| C. | PS and required return |
| D. | /E ratio and required return |
| Answer» C. PS and required return | |
| 895. |
Setup cost is a type of __________ cost. |
| A. | ixed |
| B. | ariable |
| C. | emi variable |
| D. | arrying |
| Answer» B. ariable | |
| 896. |
Non-systematic risk is also known as_____________. |
| A. | iskless |
| B. | arket risk |
| C. | andom risk |
| D. | ompany-specific risk |
| Answer» E. | |
| 897. |
Market risk is best measured by the____________. |
| A. | lpha |
| B. | eta |
| C. | tandard deviation |
| D. | oefficient of variation |
| Answer» C. tandard deviation | |
| 898. |
A higher accounts receivable turnover ratio means__________. |
| A. | ower debt collection period |
| B. | igher debt collection period |
| C. | ower sales |
| D. | igher sales |
| Answer» B. igher debt collection period | |
| 899. |
The optimal portfolio is the efficient portfolio with the______________. |
| A. | owest risk |
| B. | ighest risk |
| C. | ighest utility |
| D. | east investment |
| Answer» D. east investment | |
| 900. |
Offering cash discount to customers result in _______. |
| A. | educing the average collection period |
| B. | ncreasing the average collection period |
| C. | ncreasing sales |
| D. | ecreasing sales |
| Answer» B. ncreasing the average collection period | |