MCQOPTIONS
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MCQOPTIONS
This section includes 237 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
The success of budgetary control system depends upon the willing cooperation of… |
| A. | shareholders |
| B. | management |
| C. | creditors |
| D. | all the functional areas of management |
| Answer» E. | |
| 102. |
Budgetary control __________ replace management in decisionâ€making. |
| A. | can |
| B. | cannot |
| C. | sometimes |
| D. | inadequate data |
| Answer» C. sometimes | |
| 103. |
Budgetary control helps to introduce a suitable incentive and remuneration based on… |
| A. | changes in government policies |
| B. | inflationary conditions |
| C. | both |
| D. | none |
| Answer» C. both | |
| 104. |
Budgetary control provides a basis for… |
| A. | bonus shares |
| B. | rights shares |
| C. | remuneration plans |
| D. | none |
| Answer» D. none | |
| 105. |
Budgetary control system helps the management to eliminate… |
| A. | undercapitalization |
| B. | overcapitalization |
| C. | both |
| D. | subjective matter |
| Answer» D. subjective matter | |
| 106. |
Budgetary control helps the management in… |
| A. | obtaining bank credit |
| B. | issue of shares |
| C. | getting grants from government |
| D. | all of these |
| Answer» B. issue of shares | |
| 107. |
Budgetary control facilitates easy introduction of the… |
| A. | marginal costing |
| B. | ratio analysis |
| C. | standard costing |
| D. | subjective matter |
| Answer» D. subjective matter | |
| 108. |
Budgetary control system defines the objectives and policies of the… |
| A. | production department |
| B. | finance department |
| C. | marketing department |
| D. | all |
| Answer» E. | |
| 109. |
Budgetary control system acts as a friend, philosopher and guide to the… |
| A. | management |
| B. | share holders |
| C. | creditors |
| D. | employees |
| Answer» B. share holders | |
| 110. |
A budget is tool which helps the management in planning and control of… |
| A. | all business activities |
| B. | production activities |
| C. | purchase activities |
| D. | sales activities |
| Answer» B. production activities | |
| 111. |
Budget is prepared for a… |
| A. | indefinite period |
| B. | definite period |
| C. | period of one year |
| D. | six months |
| Answer» C. period of one year | |
| 112. |
A budget is a plan of action expressed in… |
| A. | financial terms |
| B. | nonâ€financial terms |
| C. | both |
| D. | subjective matter |
| Answer» D. subjective matter | |
| 113. |
-Which of the following would be consistent with a hedging (maturity matching) approach to financing working capital? |
| A. | financing short-term needs with short-term funds. |
| B. | financing short-term needs with long-term debt. |
| C. | financing seasonal needs with long-term funds. |
| D. | financing some long-term needs with short-term funds. |
| Answer» B. financing short-term needs with long-term debt. | |
| 114. |
The amount of current assets that varies with seasonal requirements is referred to as __________ working capital. |
| A. | permanent |
| B. | net |
| C. | temporary |
| D. | gross |
| Answer» D. gross | |
| 115. |
Which of the following would be consistent with a conservative approach to financing working capital? |
| A. | financing short-term needs with short-term funds. |
| B. | financing short-term needs with long-term debt. |
| C. | financing seasonal needs with short-term funds. |
| D. | financing some long-term needs with short-term funds. |
| Answer» C. financing seasonal needs with short-term funds. | |
| 116. |
Which of the following would be consistent with an aggressive approach to financing working capital? |
| A. | financing short-term needs with short-term funds. |
| B. | financing permanent inventory buildup with long-term debt. |
| C. | financing seasonal needs with short-term funds. |
| D. | financing some long-term needs with short-term funds. |
| Answer» E. | |
| 117. |
To financial analysts, "working capital" means the same thing as __________. |
| A. | total assets |
| B. | fixed assets |
| C. | current assets |
| D. | current assets minus current liabilities. |
| Answer» D. current assets minus current liabilities. | |
| 118. |
The factors that affect dividend policy are: |
| A. | tax consideration |
| B. | privatization |
| C. | foreign investment |
| D. | working cash flow |
| Answer» B. privatization | |
| 119. |
Under which type of bank borrowing can a borrower obtain credit from a bank against its bills? |
| A. | letter of credit |
| B. | cash |
| C. | purchase or discounting of bills |
| D. | working capital loan |
| Answer» D. working capital loan | |
| 120. |
The tools of treasury management does not include: |
| A. | foreign exchange management |
| B. | cash management |
| C. | receivable management |
| D. | risk management |
| Answer» E. | |
| 121. |
Money market financial services not include: |
| A. | bill discounting |
| B. | merchant banking |
| C. | leasing |
| D. | securitization |
| Answer» C. leasing | |
| 122. |
Which of the following is a technique that helps the exporter to sell the receivables to any bank or financial institution without recourse? |
| A. | forfeiting |
| B. | leading & lagging |
| C. | derivatives |
| D. | netting |
| Answer» B. leading & lagging | |
| 123. |
What are the different types of underlying assets? |
| A. | stocks |
| B. | bonds |
| C. | currency |
| D. | stock indices |
| Answer» E. | |
| 124. |
Factoring involves: |
| A. | providing short term loan |
| B. | providing long term loan |
| C. | financing of export receivables |
| D. | management of receivables of borrower |
| Answer» E. | |
| 125. |
What are people who buy or sell in the market to make profits called? |
| A. | hedgers |
| B. | speculators |
| C. | arbitrageurs |
| D. | none of the above |
| Answer» C. arbitrageurs | |
| 126. |
The percentage of earnings paid as dividends is called __________. |
| A. | dividend policy |
| B. | payout ration |
| C. | cash dividends |
| D. | reverse split |
| Answer» C. cash dividends | |
| 127. |
What are the various methods of estimating cash? |
| A. | receipts and payment method |
| B. | adjusted profit & loss method |
| C. | balance sheet method |
| D. | all of the above |
| Answer» E. | |
| 128. |
What is not a form of dividend? |
| A. | cash dividends |
| B. | bonus shares(stock dividend) |
| C. | share split |
| D. | split reverse |
| Answer» E. | |
| 129. |
The art of managing, within the acceptable level of risk, the consolidated funds optimally and profitably is called _________. |
| A. | integrated treasury |
| B. | treasury management |
| C. | merchant banking |
| D. | none of the above |
| Answer» C. merchant banking | |
| 130. |
Which of the following is not an advantages of trade credit? |
| A. | easy availability |
| B. | flexibility |
| C. | informality |
| D. | buyout financing |
| Answer» E. | |
| 131. |
Which of the following are theories for dividend relevance? |
| A. | walter’s model |
| B. | mm approach |
| C. | game theory |
| D. | market value theory |
| Answer» B. mm approach | |
| 132. |
Firms which are capital intensive rely on _________. |
| A. | equity |
| B. | short term debt |
| C. | debt |
| D. | retained earnings |
| Answer» D. retained earnings | |
| 133. |
Hirer is entitled to claim ___________. |
| A. | depreciation |
| B. | salvage value |
| C. | hp payments |
| D. | none of above |
| Answer» B. salvage value | |
| 134. |
_________ function includes a firm’s attempts to balance cash inflows and outflows. |
| A. | finance |
| B. | liquidity |
| C. | investment |
| D. | dividend |
| Answer» C. investment | |
| 135. |
What are the aspects of working capital management? |
| A. | inventory management |
| B. | receivable management |
| C. | cash management |
| D. | all of the above |
| Answer» E. | |
| 136. |
___________ is required to meet special exigencies such as launching of extensive marketing campaigns for conducting research. |
| A. | seasonal working capital |
| B. | special working capital |
| C. | reserve working capital |
| D. | regular working capital |
| Answer» C. reserve working capital | |
| 137. |
The statement of changes in financial position prepared to determine only the sources and uses of working capital between two dates of balance sheet is known as __________. |
| A. | cash flow statement |
| B. | memorandum balance sheet |
| C. | fund flow statement |
| D. | profit and loss account |
| Answer» D. profit and loss account | |
| 138. |
The working capital required to meet the seasonal need of the business is called _______. |
| A. | fixed working capital |
| B. | variable working capital |
| C. | special working capital |
| D. | seasonal working capital |
| Answer» E. | |
| 139. |
________ is the excess amount over the requirement for regular working capital. |
| A. | variable working capital |
| B. | fixed working capital |
| C. | reserve working capital |
| D. | regular working capital |
| Answer» D. regular working capital | |
| 140. |
The __________ is required to ensure circulation of operating cycle. |
| A. | regular working capital |
| B. | fixed working capital |
| C. | reserve working capital |
| D. | variable working capital |
| Answer» B. fixed working capital | |
| 141. |
The funds required for running an organisation are generally called as ____________. |
| A. | overdraft |
| B. | cash credit |
| C. | working capital |
| D. | operating profit |
| Answer» D. operating profit | |
| 142. |
According to ________ working capital refers to the difference between current assets and current liabilities. |
| A. | equal concept |
| B. | accounting concept |
| C. | net concept |
| D. | gross concept |
| Answer» D. gross concept | |
| 143. |
According to ________ working capital refers to the company’s total investment in current assets. |
| A. | net concept |
| B. | gross concept |
| C. | equal concept |
| D. | accounting concept |
| Answer» C. equal concept | |
| 144. |
_________ being the life blood of a business requires to be maintained in reasonably adequate quantity to run business successfully. |
| A. | working capital |
| B. | proper documents |
| C. | assets |
| D. | petty cash |
| Answer» B. proper documents | |
| 145. |
Working capital over and above the fixed working capital would be termed as _______. |
| A. | temporary working capital |
| B. | permanent working capital |
| C. | net working capital |
| D. | gross working capital |
| Answer» B. permanent working capital | |
| 146. |
__________ denotes a situation of too much or excessive working capital. |
| A. | gross working capital |
| B. | redundant working capital |
| C. | permanent working capital |
| D. | temporary working capital |
| Answer» C. permanent working capital | |
| 147. |
_____ is that minimum amount which should always be present in the business to carry out the activities without a break. |
| A. | net working capital |
| B. | gross working capital |
| C. | permanent working capital |
| D. | temporary working capital |
| Answer» D. temporary working capital | |
| 148. |
Service and Financial concerns may have _____. |
| A. | longest operating cycle |
| B. | shortest operating cycle |
| C. | manufacturing phase |
| D. | none of these |
| Answer» C. manufacturing phase | |
| 149. |
The Funds required by way of permanent working capital should be provided by __________. |
| A. | indigenous banks |
| B. | commercial banks |
| C. | rbi |
| D. | proprietors |
| Answer» E. | |
| 150. |
A positive (net) working capital will arise when current assets exceed _________. |
| A. | fixed liabilities |
| B. | contingent liabilities |
| C. | long term liabilities |
| D. | current liabilities |
| Answer» E. | |