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Sample Test for Finance Conceptual MCQs

1. While deciding the level of working capital a company should maintain, following factor(s) has to be taken into account: a. b. c. d. e. Industry Average Business Regulations Nature of Business All of the above None of the above

2. At a certain point, your working capital becomes a permanent or fixed capital. a. True b. False 3. Seasonal cash needs are financed by: a. b. c. d. Long term loans Short term loans Leasing None of the above

4. Ijara is a form of a. b. c. d. Long term loan Financial Lease Operating Lease None of the above

5. Dividend Equalization Reserve (DER) is a. b. c. d. A strategy used to pay dividend in installments A strategy to pay dividends in case of low profits A strategy to pay dividends in case of exceptionally high profits None of the above

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