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traditionally avails are provided by .
14. government has made it mandatory to include in their annual reports information on customers,
processes & human capital.
18. Equity includes :-

Deferred Payment Liabilities
Development Rebate Reserve
Loans from other Corporates
Interest Payable

21.
1. Fiscal advantage, the interest of
financing with debt
1.Employees & trade unions increase their
demands
2. Financing with a high percentage
of debt
2.Is deductible from the profit
3. Firms must repay debts
3.Shows the illusion of financial problems
4. A highly leveraged firm
4.Not necessary to have discussions
regarding the sell out of assets
5.Prevents firms from investing too much
6.Discussions about the sell out of assets
must be made
24. Capital gains are taxed at .
50. Investment decisions are mainly concerned with :-

Liabilities
Equity
Assets
Leverage

53. As per Pecking order theory, which is the costliest means of funding :-

Secured debt
Unsecured debt
Equity Shares
Preference Shares

45. know the best about a firm's performance.
49. When a firm invests in human resources by acquisition & training, it anticipates a
1
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
2
Multiple Choice Multiple Answer
Question
A current investment is an investment that is by nature :-
Correct Answer Readily realisable , Intended to be held for not more than 1year from the date on
which investment is made
Your Answer
Readily realisable , Intended to be held for not more than 1year from the date on
which investment is made
True/False
Question
Trade credit creates book debts which the firm is expected to collect in the near
future.
Correct Answer True
Your Answer
True
True/False
Question
The chance of bankruptcy is small when the leverage of a firm is small.
Correct Answer True
Multiple Choice Multiple Answer
Question
The 3 groups of participants in a firm are :-
Correct Answer Suppliers of equity , Debt suppliers , Firm Managers
Your Answer
Suppliers of equity , Debt suppliers , Firm Managers
Multiple Choice Multiple Answer
Question
The financial managers of a company consume a great deal of their time in
activities like :-
Correct Answer Monitoring the investment in inventories , Negotiating favourable credit terms ,
Administrating Accounts receivables
Your Answer
Monitoring the investment in inventories , Negotiating favourable credit terms ,
Defining a proper strategy for product promotion
True/False
Question
Appraisal value of a firm can be acquired from an independent appraisal agency.
Correct Answer True
Multiple Choice Multiple Answer
Question
The following categories of personnel are taken into account to calculate the
actual manpower strength :-
Correct Answer Full time equivalents , Temporary staff , Part time personnel
Your Answer
Full time equivalents , Temporary staff , Casual workers
Multiple Choice Multiple Answer
Question
Accrued expenses represent :-
Correct Answer Costless financing , An interest free source of financing
Your Answer
Costless financing , An interest free source of financing , Truly discretionary
financing
3
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