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.
| 201. |
Which of the following is a liability of a bank? |
| A. | Treasury Bills, |
| B. | Commercial papers, |
| C. | Certificate of Deposits, |
| D. | Junk Bonds. |
| Answer» D. Junk Bonds. | |
| 202. |
The type of collateral (security) used for short-term loan is |
| A. | Real estate, |
| B. | Plant & Machinery, |
| C. | Stock of good |
| D. | Equity share capital |
| Answer» D. Equity share capital | |
| 203. |
Commercial paper is a type of |
| A. | Fixed coupon Bond |
| B. | Unsecured short-term debt |
| C. | Equity share capital, |
| D. | Government Bond |
| Answer» C. Equity share capital, | |
| 204. |
Which of the following is not a spontaneous source of short-term funds ? |
| A. | Trade credit, |
| B. | Accrued expenses, |
| C. | Provision for dividend, |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 205. |
Concept of Maximum Permissible Bank finance was introduced by |
| A. | Kannan Committee |
| B. | Chore Committee, |
| C. | Nayak Committee, |
| D. | Tandon Committee. |
| Answer» E. | |
| 206. |
In India, Commercial Papers are issued as per the guidelines issued by |
| A. | Securities and Exchange Board of India, |
| B. | Reserve Bank of India, |
| C. | Forward Market Commission, |
| D. | None of the above. |
| Answer» C. Forward Market Commission, | |
| 207. |
Which of the following is not applicable to commercial paper |
| A. | Face Value |
| B. | Issue Price |
| C. | Coupon Rate |
| D. | None of the above. |
| Answer» E. | |
| 208. |
Commercial paper are generally issued at a pries |
| A. | Equal to face value, |
| B. | More than face value, |
| C. | Less than face value, |
| D. | Equal to redemption value |
| Answer» D. Equal to redemption value | |
| 209. |
The basic objective of Tandon Committee recommendations is that the dependence ofindustry on bank should gradually |
| A. | Increase, |
| B. | Remain Stable |
| C. | Decrease |
| D. | None of the above |
| Answer» D. None of the above | |
| 210. |
Cash discount terms offered by trade creditors never be accepted because |
| A. | Benefit in very small |
| B. | Cost is very high |
| C. | No sense to pay earlier |
| D. | None of the above. |
| Answer» E. | |
| 211. |
In lease system, interest is calculated on |
| A. | Cash down payment |
| B. | Cash price outstanding |
| C. | Hire purchase price |
| D. | None of the above |
| Answer» C. Hire purchase price | |
| 212. |
A short-term lease which is often cancellable is known as |
| A. | Finance Lease |
| B. | Net Lease, |
| C. | Operating Lease |
| D. | Leverage Lease |
| Answer» D. Leverage Lease | |
| 213. |
Which of the following is not a usual type of lease arrangement? |
| A. | Sale & leaseback, |
| B. | Goods on Approval, |
| C. | Leverage Lease, |
| D. | Direct Lease |
| Answer» C. Leverage Lease, | |
| 214. |
Under income-tax provisions, depreciation on lease asset is allowed to |
| A. | Lessor |
| B. | Lessee |
| C. | Any of the two |
| D. | None of the two |
| Answer» B. Lessee | |
| 215. |
A lease which is generally not cancellable and covers full economic life of the asset isknown as |
| A. | Sale and leaseback, |
| B. | Operating Lease |
| C. | Finance Lease, |
| D. | Economic Lease |
| Answer» D. Economic Lease | |
| 216. |
Under the provisions of AS-19 'Leases', a leased asset is shown is the balance sheet of |
| A. | Manufacturer |
| B. | Lessor |
| C. | Lessee |
| D. | Financing bank |
| Answer» D. Financing bank | |
| 217. |
Lease which includes a third party (a lender) is known as |
| A. | Sale and leaseback |
| B. | Direct Lease, |
| C. | Inverse Lease, |
| D. | Leveraged Lease |
| Answer» E. | |
| 218. |
One difference between Operating and Financial lease is: |
| A. | There is often an option to buy in operating lease |
| B. | There is often a call option in financial lease. |
| C. | An operating lease is generally cancelable by lease |
| D. | A financial lease in generally cancelable by lease. |
| Answer» D. A financial lease in generally cancelable by lease. | |
| 219. |
From the point of view of the lessee, a lease is a: |
| A. | Working capital decision, |
| B. | Financing decision, |
| C. | Buy or make decision, |
| D. | Investment decision |
| Answer» C. Buy or make decision, | |
| 220. |
Which of the following is not true for a "Lease decision for the lessee? |
| A. | Helps in project selection |
| B. | Helps in project financing |
| C. | Helps in project location |
| D. | All of the above. |
| Answer» C. Helps in project location | |
| 221. |
For a lesser, a lease is a |
| A. | Investment decision, |
| B. | Financing decision, |
| C. | Dividend decision |
| D. | None of the above. |
| Answer» B. Financing decision, | |
| 222. |
Risk-Return trade off implies |
| A. | Minimization of Risk, |
| B. | Maximization of Risk, |
| C. | Ignorance of Risk |
| D. | Optimization of Risk |
| Answer» E. | |
| 223. |
Basic objective of diversification is |
| A. | Increasing Return, |
| B. | Maximising Return, |
| C. | Decreasing Risk, |
| D. | Maximizing Risk. |
| Answer» D. Maximizing Risk. | |
| 224. |
Risk-aversion of an investor can be measured by |
| A. | Market Rate of Return |
| B. | Risk-free Rate of Return, |
| C. | Portfolio Return, |
| D. | None of the above. |
| Answer» E. | |
| 225. |
If the intrinsic value of a share is less than the market price, which of the mostreasonable? |
| A. | That shares have lesser degree of risk |
| B. | That market is over valuing the shares |
| C. | That the company is high dividend paying, |
| D. | That market is undervaluing the share |
| Answer» C. That the company is high dividend paying, | |
| 226. |
_____________ has suggested three methods of working out of the maximum amount that unit may expect from the bank (MPBF) |
| A. | tondon committee |
| B. | chore committee |
| C. | walters committee |
| D. | gordon\s committee |
| Answer» B. chore committee | |
| 227. |
Treatment of _______ in AS 19 is almost same as required by tax laws in India |
| A. | operating lease |
| B. | net lease |
| C. | financial lease |
| D. | hire purchase |
| Answer» B. net lease | |
| 228. |
EPS = ___________ / Total number of shares |
| A. | profit after tax |
| B. | net profit after interest and tax |
| C. | npbt |
| D. | ebt |
| Answer» C. npbt | |
| 229. |
___________ value is used when an investor wants true or real value on basis of analysis of fundamentals without considering the prevailing price in the market |
| A. | intrinsic |
| B. | social |
| C. | current |
| D. | average |
| Answer» B. social | |
| 230. |
_________ classifies merger as vertical and horizontal |
| A. | as14 |
| B. | as20 |
| C. | as 9 |
| D. | as 12 |
| Answer» B. as20 | |
| 231. |
________ are taken as an additional security for working capital credit by banks |
| A. | hypothecations |
| B. | pledge |
| C. | mortgage |
| D. | cash credit |
| Answer» D. cash credit | |
| 232. |
Sale and lease back and ____________ are types of finance lease |
| A. | operating lease |
| B. | finance lease |
| C. | leverage lease |
| D. | net lease |
| Answer» D. net lease | |
| 233. |
Which of the follwing is not a usual method of calculation of share swap ratio? |
| A. | sales turnover |
| B. | economic value added |
| C. | dividend after tax |
| D. | tax benefit |
| Answer» C. dividend after tax | |
| 234. |
___________ is the ratio of the number of shares of the aquiring firm and the selling firm's share |
| A. | dividennd pay out ratio |
| B. | debt- equity ratio |
| C. | exchange ratio |
| D. | current ratio |
| Answer» D. current ratio | |
| 235. |
____________ indirect form of working capital financing and bank assume only the risk the credit being provided by the supplier himself |
| A. | mortgage loan |
| B. | letter of credit |
| C. | bank overdraft |
| D. | cash credit |
| Answer» C. bank overdraft | |
| 236. |
EVA= ___________ - (Equity capital x % of cost of equity capital |
| A. | earning after tax |
| B. | net operating profit after tax |
| C. | npat |
| D. | npbt |
| Answer» C. npat | |
| 237. |
From the point of view lessee, a lease is a_________ |
| A. | financing decision |
| B. | buy or make decision |
| C. | working capital decision |
| D. | investment decision |
| Answer» B. buy or make decision | |
| 238. |
The kind of takeover which is done through negotiations between two groups is called_________ |
| A. | horizontal merger |
| B. | hostile take over |
| C. | friendly take over |
| D. | vertical synergy |
| Answer» D. vertical synergy | |
| 239. |
Book value ( Net assets )= Total Assets - _______________ |
| A. | total liability |
| B. | current asset |
| C. | long term debt |
| D. | current liability |
| Answer» D. current liability | |
| 240. |
____________ synergy refers to increase in the value of the firm that occurs to the combined firm from financial factors. |
| A. | group |
| B. | vertical |
| C. | financial |
| D. | operating |
| Answer» D. operating | |
| 241. |
The arrengement in which entire amount of borrowing is credited to the current account of the borrower or realised in cash is called as_________ |
| A. | letter of credit |
| B. | bank overdraft |
| C. | loan |
| D. | bill discounting |
| Answer» D. bill discounting | |
| 242. |
In a __________ transaction the goods are let on hire the purchase price is to be paid in installment and hirer is allowed an option to purchase the goods by paying all the installment |
| A. | hire purchase |
| B. | credit purchase |
| C. | lease purchase |
| D. | installment purchase |
| Answer» B. credit purchase | |
| 243. |
_______________Is a entity formed by two or more companies to undertake financial activity together. |
| A. | parntership firm |
| B. | acquisition |
| C. | joint venture |
| D. | merger |
| Answer» D. merger | |
| 244. |
___________ involves mergers and acquisition of firm belonging to differernt countries of the world. |
| A. | credit merger |
| B. | group merger |
| C. | cross bordor merger |
| D. | synergy merger |
| Answer» D. synergy merger | |
| 245. |
__________ means reputation of a firm which is in existance for a number of year in market |
| A. | goodwill |
| B. | bad debts |
| C. | copy rights |
| D. | royalties |
| Answer» B. bad debts | |
| 246. |
_________The lessee and the owner of the equipment are two different entities |
| A. | direct lease |
| B. | financial lease |
| C. | operating lease |
| D. | net lease |
| Answer» B. financial lease | |
| 247. |
_____________ Means the action of an organisation or government selling or liquidating an asset or subsidiary |
| A. | sale out |
| B. | disinvestment |
| C. | lock out |
| D. | wind up |
| Answer» C. lock out | |
| 248. |
___________ is the primary institutional source of working capital finance in India |
| A. | debtors |
| B. | loan from friend |
| C. | bank credit |
| D. | creditors |
| Answer» D. creditors | |
| 249. |
__________ is a blending of two or more exisiting undertaking into one undertaking |
| A. | partnership |
| B. | joint stock company |
| C. | joint venture |
| D. | amalgamation |
| Answer» E. | |
| 250. |
_____________ refers to the price at which an asset can be traded in the market |
| A. | past value |
| B. | face value |
| C. | market value |
| D. | future value |
| Answer» D. future value | |