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BBA Qustion and Answers
BBA Qustion and Answers
(B) Debentures
(D) Bonds
(A) Debt
(B) Equity
(C) Loans
(D) Bonds
(A) Relevant
(B) Irrelevant
(C) Unrealistic
4.If the sharcholders prefer Regular income, how does this affect the dividen decision:
5.Which of the following is the proportions of earnings paid to common shareholders in the form
of cash dividend ?
Ans (A)
decision:
(B)
𝐴
A invertment
𝐴
A dividend
(C) A Dividend;
𝐴
A financing
(C) Current Liabilities Less than current Assets and Fixed Assets
Ans - (C) Current Liabilities Less than current Assets and Fixed Assets
(B) The company currently is unable to meet its short term liabilities
(C) The company has negative carnings before lnterest and Tax
Ans - (B) The company currently is unable to meet its short term liabilities
(B) The capital which is required at the time of the commencement of business
1
12. refers to the length of time allowed by a firm for its customers to make pryment for their
purchases:
(A) Equity Capital, Preference Capital, Debentures, Bound and Long-term Bank Loans
(B) Mode of Overdraff, Cash Credit, Public Deposits and Retained Earnings
16.Which of the following analyzes the accounts Receivable, inventory, and accounts payables
cycles in terms of number of days?
(B) What portion will be retained in the business to facilitate long-term growth
(A) 𝑟>𝑘r>k
(B) 𝑟=𝑘r=k
(C) 𝑟<𝑘r<k
Answer: (A) 𝑟>𝑘r>k (where 𝑟r is the internal rate of return and 𝑘 is the cost of capital).
26.The Cost in the process of Raising fund through equity is called as:
28.Name the decision which affects both the profitability and the financial risk:
29.If an initial investment is ₹765,000 and the payback period is 4.5 years, then increase in
future cash flow will be:
Answer: We need to calculate the additional cash flow required to achieve the payback period.
Additional cash flow required = Initial investment - Cash flow recovered in payback period
Additional cash flow required = ₹765,000 - (₹765,000 / 4.5) = ₹765,000 - ₹170,000 = ₹595,000
(B) The Weighted average of the cost of various long-term and short-term sources of finance
(C) The average Rate of Return it must earn on investment to satisfy the investors
(D) The minimum Rate of Return it must earn on investment to keep its investors satisfied
Answer: (B) The Weighted average of the cost of various long-term and short-term sources of
finance.
(A) FW Paish
33.The basic finance function is wealth maximization, which aims to enhance the value of the
shares and can be better described by which of the following financial decisions:
38.The rate of discount at which NPV of a project becomes zero is also known as:
(A) (iv)
(B) (ii)
(C) (i)
(D) (iii)