S QUESTIONS U Option 1 Option 2 Option 3 Option 4 A

1 Financial Management is -------------. 1 A science An art Science and art None of the above 3
Maximising the net Actions that increase
Maximising the eps None of the above
2 Profit Maximisation is concerned with ---------------. 1 present value profits 3
3 Wealth maximisation is also known as ---------------. 1 Value maximisation Profit maximisation Ebit maximisation All the above 1
He is a person who is responsible in a significant way to carry out the finance
Controller Finance manager Treasurer Supervisior
4 functions ------------. 1 2
Making dividend
Raising the funds Utilisation of funds None of the above
5 Traditionally, the role of financial manager was limited to -------------. 1 decisions 1
It means maximising the net present value or wealth of a course of action to
Corporate finance Profit maximisation Wealth maximisation None of the above
6 shareholders --------------. 1 3
Net addition made to Employment of funds
Persons commitment
the nations capital on assets to earn
to buy a falt or house
7 Investment is the ------------. 1 stock returns None of these 3
In Wealth maximisation, financial management considers interest of the Shareholders and
Shareholders Stakeholders None of the above
8 --------------. 1 stakeholders 3
Assets
Wealth Maximisation Sales Maximisation
9 The only feasible purpose of financial management is --------------. 1 Profit Maximisation Maximisation 1
When the firm has adequate cash to pay for its bills, it is known as ---------------
Profitability Liquidity Risk None of the above
10 . 1 2
11 Financial management process deals with ------------. 1 Investments Financing decisions Business Decisions None of these 2
It involves the determination of the percentage of profits earned by the
Investment decision Capital budgeting Financing decision Dividend decision
12 enterprise which is to be paid to its shareholders --------------. 1 4
Cost of preference Ovreall cost of
Cost of debt Cost of equity
13 The cost of retained earnings is slightly lower than ------------. 1 capital capital 3
Non-diversifiable
Systematic risk Unsystematic risk Diversifiable risk
14 Diversifiable risk is also known as ------------. 1 risk 2
The weights which are assigned to each source of funds, in proportion of Market value
Historical weights Book value weights Marginal weights
15 financing inputs the firm intends to employ or raise is known as ---------. 1 weights 3
The cost which is already been incurred for financing a particular project is
Future cost Historical cost Specific cost Composite cost
16 known as -------------. 1 2
Capital asset pricing Current asset pricing Composite asset Custom asset
17 CAPM stands for ---------------. 1 model model pricing model pricing model 1
Procurement &
Safe custody of funds Expenditure of funds Procurement of effective use of
18 Finance Function comprises -------------. 1 only only finance only funds 4
Amount of returns Timing of anticipated Risk associated with
19 The objective of wealth maximization takes into account -------. 1 expected returns uncertainty of returns All of the above 4
All elements of
acquiring and using
Efficient Brand dimension means of financial
management of every resources for Arrangements of
20 Financial management mainly focuses on ---------. 1 business financial activities funds 3
Acquiring capital Efficient
Proper utilisation of Arrangement of
assets of the management of
funds financial resources
21 In his traditional role the financial manager is responsible for ---------. 1 organisation capital 4
Weighted average Composite cost of
Both a and b None of the above
22 Overall cost of capital can be denoted as -----------. 1 cost of capital capital 3
Annual
Annual Interest
23 The cost of debt capital is calculated on the basis of ------------. 1 Net proceeds Capital Depreciation 2
The risk which can be eliminated or minimized through diversification is Non-diversifiable
Financial risk Operating risk Diversifiable risk
24 termed as -------. 1 risk 3
The profit which are not distributed as dividends to the investors is known as
Bonus Profit sharing Retained earnings None of the above
25 -------------. 1 3
Return at zero risk Premium for operating Premium for financial
All of the above
26 The cost of capital comprises of --------------. 1 level risk risk 4
Compounding
Cash flow Fund flow Simple technique
27 The technique used to find out the future value of money ---------. 1 technique 3
You can use to roughly estimate how many years a given sum of money must
earn at a given compound annual interest rate in order to double that initial The rule of 60 The rule of 72 The rule of 80 None of the above
28 amount ----. 1 2
29 (1 + i)n ------. 1 Pvif Fvif Npvif Npvpf 2
30 Finance has been traditionally classified into two classes --------. 1 Four Two Three Five 2
31 Cost of capital for a firm may be defined as the cost of --------. 1 Obtaining Funds Sources Equity None of these 1
32 Traditional Approach introduced by -----------. 1 Thomas Thomas Greene Edition None of these 2
33 Whichh cost is the cost incurred in the past in procuring furnds for the firm? 1 Future cost Historical cost Fixed cost Variable cost 2
Which cost is the combined cost of various sources of long-term finance such
Average cost Fixed cost
34 as equity shares, preference shares and debentures? 1 Future cost Historal cost 1
35 Implicit cost is the --------. 1 Future cost Opportunity cost Fixed cost None of these 2
36 Zero coupon bonds, the interest rate is ------------. 1 Not specified Specified Controlled None of these 1
37 To increase a given present value, the discount rate should be adjusted -----. 1 Upward Downward Increased None of the above 2
The book value of the The market price
The number of
firm's assets less the The amount of salary per share of the
people employed in
book value of its paid to its employees firm's common
the firm.
38 "Shareholder wealth" in a firm is represented by: 1 liabilities. stock. 4
In calculating the costs of the individual components of a firm's financing, the
corporate tax rate is important to which of the following component cost Debt Equity Preference dividend None of the above
39 formulas? 1 1
This is required in the
This is the simplest
This is consistent with
u.s. by the securities This is a very
way to do the
the goal of maximizing
Market values are often used in computing the weighted average cost of and exchange common mistake.
calculation.shareholder value.
40 capital because --------. 1 commission. 2
The current
The sum of common market price per
The common stock
stock and preferred The book value of the share of common
equity account on the
stock on the balance firm. stock times the
firm's balance sheet.
In calculating the proportional amount of equity financing employed by a firm, sheet. number of
41 we should use: 1 shares outstanding 4
 It acknowledges
It avoids the problem It acknowledges that
that most new
of computing the It is the only way to most new investment
investment
required rate of return measure a firm's projects have about
projects offer
for each required return. the same degree of
about the same
investment proposal risk.
42 A single, overall cost of capital is often used to evaluate projects because: 1 expected return. 1
Coefficient of Coefficient of
Standard deviation Beta
43 A measure of "risk per unit of expected return" ------. 1 variation correlation 2
Return on
Return on assets Earnings per share Net profitratio
44 Which of the following helps analysing return to equityShareholders? 1 investment 2
45 A company with a highly predictable EBIT is regarded as having ------------. 2 High business risk High financial risk Combines risk Systematic risk 1
When the firm is able to earn more than the fixed financial charges payable it is Unfavourable financial Negative financial Favourable
Operating leverage
46 known as -----------. 2 leverage leverage financial leverage 4
Combined
Financial leverage Operating leverage Home made leverage
47 The use of debt by the investor for arbitrage is called the --------------. 2 leverage 3
Combination of
debt, equity and
Combination of Equity shares,
Equity shares and preference capital
equity and preference preference shares and
debentures that leads to the
shares debt
maximum value of
48 An optimum capital structure may be -----------------. 2 the firm 4
49 According to MM Theory the firms can be classifed in to ---- risk classes. 2 Homogeneous Heterogeneous Financial Operating 1
50 Both NI and NOI approach suggested by -------------. 2 Durand Waltor Louis Allen Fayol 1
The process is nothing but the purchase of securities whose prices are lower
Leverage Debt Arbitrage Financial planning
51 and sale of securities whose prices are higher ------------. 2 3
Optimum capital
Capital sturcutre Financial structure None of the above
52 It is difficult to find out -----------------. 2 sturcture 2
53 _____ refers to the total amount of long-term funds employed by the firm. 2 Capital Financial planning Capitalisation Investment 3
54 A ----- is the representation of an overall plan for the firm in financial terms. 2 Capital structure Financial planning Capital employed Fixed capital 2
It is needed to run and manage a company from the promotion to the winding
Funds Stock Shares None of the above
55 up --------------. 2 1
56 The debt equity mix will have an effect on ______________. 2 Earning per share Dividend Profit Loss 1
Planning is the capital structure is an important area of ---------------- decision
Dividend Profit Financial Capital
57 making. 2 3
Capital structure of a company refers to the make up of its capitalisation and it
Short-term resources Long-term resources Capital resources Profit resources
58 includes all------. 2 2
To maximise the
To improve the
To control the assets To minimize the debt shareholders
income
59 The primary objective of Financial management ----------------. 2 wealth 4
60 NI Stands for --------------. 2 Net interest Net income Net investment All the above 2
The --------- major theories explain the relationship between capital structure,
Two Three Four Five
61 cost of capital. 2 3
62 The cost of debt is less than the cost of equity is one of the ------. 2 Objective Assumption Important Profit 2
63 ______ does not affect the overall cost of capital and the value of the firm. 2 Capital structure Financial planning Financial structure Capitalisation 1
64 The traditional approach is also called -------------- approach. 2 MM Miller Intermediate All the above 3
65 Profitability is one -------------- of a sound capital structure. 2 Objective Features Important Profit 2
Financial
Financial planning Financial structure
66 Capital structure is a part of ______________. 2 Financial services management 2
Capital gearing refers to the relationship between equity capital and
Short-term debt Debt Equity Long-term debt
67 ---------------. 2 4
It is better for a company to remain in ------- gear during the period of
Low High Low-low Debt
68 depression. 2 1
An appropriate capital structure should have the following features --------------
Profitability Solvency Flexibility All the above
69 . 2 4
Inadequacy of
Over-capitalisation Under-capitalisation Excess of capital
70 When the company is set up in recessionary period it leads to ---------------. 2 capital 2
Cut-throat
Liquidation Re-organisation None of the above
71 Under-capitalisation may lead to --------------------. 2 competition 1
72 The capital structure of company is made -------- and -------- securities. 2 Long , short Profit,loss Debt, equity Income, gain 3
73 The following factor determine capital structure --------------. 2 Trading on equity Nature of enterprise Government policy All of the above 4
The best time for floatation of securities by a company is the period of
Inflation Deflation Recovery None of the above
74 --------------. 2 3
The point of ----- refers to that EBIT level at which EPS remains the same
Difference Indifference Reality All of the above
75 irrespective of debt-equity mix. 2 2
Heavy promotion Inadequate provision Distribution of more
All of the above
76 Over-capitalisation may be due to -------------. 2 expenses for depreciation dividends 4
Determining the type Determining the mix
Determining the total
of securities to be of the various All of the above
amount to be raised
77 The term capitalisation includes ------------------. 2 issued securities to be issued 4
The process of determining the amount of funds needed by a business is known
Capitalisation Over-capitalisation Under-capitalisation None of the above
78 as ----------------. 2 1
79 Cost of capital is the -------------- rate of return expected by its investors. 2 Minimum Maximum Effective Quality 1
80 According to traditional approach, cost of capital is affected by ------ . 2 Profit Loss Debt-equity mix All the above 3
The unlevered firm will have more value than levered firm because of
Corporate tax Income tax
81 ________. 2 Professional tax GST 1
82 According to M & M theory ,the total value of firm is _____. 2 Static Dynamic High Low 1
83 This leverage is associated with investment activities ---------------. 3 Financial leverage Operating risk Combined leverage Dual leverage 2
The expenses which vary with the production and incurred only when there is a Semi-variable Fixed operating
Variable expenses Fixed expenses
84 production are known as ---------------. 3 expenses expenses 1
Dol is greater than
Dol is equal to one Dol is less than one None of the above
85 The operating leverage exists when --------. 3 one 3
This leverage expresses the relationship between the changes in sales over
Operating leverage Financial leverage Composite leverage None of the above
86 changes in EPS ---------. 3 3
87 When a firm has high operating leverage then it is a -------. 3 Very risky situation No risky situation Less risky situation None of the above 1
Division of operating Degree of operating Degree of
None of the above
88 DOL denotes -------. 3 leverage leverages organisation leverage 2
89 Operating leverage helps in analysis of ---------. 3 Business Risk Financing Risk Production Risk Credit Risk 1
Constant dividend Stable rupee dividend
Constant percentage All of the above
90 Stability of dividend may be in the following form --------. 3 per share plus extra dividend 4
91 The capitalization of profit is termed as -------------. 3 Cash dividend Bond dividend Stock dividend Property dividend 3
92 It refers to that portion of profit distributed among shareholders ------------. 3 Dividend Retained earnings Dividend policy None of the above 1
 Foreign Exchange
Interest Rate risk
93 Which of the following is studied with the help of financial leverage? 3 Marketing Risk Risk Financing Risk 4
Operating leverage results from the existence of ------- in the firm's income Fixed operating
Financial expenses Earning per share None of the above
94 stream. 3 expenses 1
95 The ------------- refers to the uncertainty or variability of the firm's Ebit. 3 Financial risk Business risk Bond risk Capital risk 2
96 Higher financial leverage is related to the use of ------------. 3 Higher Equity Higher debt Lower debt None of these 2
97 Higher operating leverage is related to the use of higher ------. 3 Debt Equity Fixed cost Variable cost 3
98 ------ analysis is a method to study the impact of leverage. 3 Ebit – eat Ebit – eps Ebit- eit None of the above 2
The employment of an asset or service of funds for which the firm has to pay
Capital structure Leverage Dividend policy None of the above
99 fixed return is termed as ------. 3 2
100 Operating leverage works when -------------. 3 Sales Increase Sales Decrease Both a and b None of these 3
101 When the dividend is paid in the form of cash is known as ------------. 3 Cash dividend Stock dividend Preference dividend Equity dividend 1
102 Financial leverage is also known as -----------. 3 Equity Trading on equity Strength All the above 2
103 A firm will have faourable leverage if its ------------- more than the debt cost. 3 Debt Equity Earnings Wealth 3
104 Operating leverage X Financial Leverage = -------. 3 Composite leverage Financial leverage Operating leverage None of the above 1
105 Financial leverage measures relationship between -----. 3 EBIT and PBT EBIT and EPS Sales and PBT Sales and EPS 2
106 The financial leverage is used to magnify the shareholders ------------. 3 Profit Earnings Wealth None of the above 2
107 Financial leverage is employed to plan the ratio between ----------- and -------. 3 Income, gain Debt, income Debt, equity All the above 3
108 The ---------- is affected by the degree of financial leverage. 3 Earning per share Earnings Income Debt 1
109 Both financial and operating leverage magnify the ----------- of the firm. 3 Wealth Profit Revenue None of the above 3
The use of debt and preference capital with equity is known as -------- or
Operating leverage Financial leverage Combined leverage All of the above
110 trading on equity. 3 2
A --------------- is the distribution of profits of a com pany among its
Profit Dividend Interest All of the above
111 shareholders. 3 2
Dividend policy of a firm affects both the long-term financing and
Performance Wealth Shareholders wealth Distributors
112 ----------------. 3 3
113 The ------------- dividend promises to pay the shareholders at a future data. 3 Scrip Cash Profit Income 1
114 The ------------ dividend is a usual method of paying dividend. 3 Profit Cash Income None of the above 2
115 Business risk can be measured by ------------. 3 Financial leverage Operating leverage Combined Leverage None of these 2
116 Financial Leverage is Zero, if -----------. 3 EBIT = Interest EBIT = ZERO EBIT = Fixed cost None of these 2
117 Combined leverage can be used to measure the relationship between ---------. 3 EBIT and EPS PAT and EPS Sales and EPS Sales and EBIT 3
118 Which combination is generally good for firms? 3 High OL, High FL Low OL, Low FL High OL, Low FL None of these 3
119 Combined Leverage is obtained from OL and FL by their -----. 3 Addition Subtraction Multiplication None of these 3
--------- is the measure of the total leverage due to both operating and financial
Financial leverage Combined leverage Operating leverage All of the above
120 fixed cost. 3 2
121 Operating leverage arises because of -------------. 3 Fixed cost production Fixed interest cost Variable cost None of these 1
122 In stock split par vale of the share is ------. 3 Reduced Increased Constant None of these 1
123 Right issue is also known as ---------------- Right. 3 Pre-emptive Preference Equity None of the above 1
124 Operating leverage is calculated as ---------. 3 Contribution-EBIT EBIT-PBT EBIT-Interest EBIT-Tax 2
Working capital
Operating leverage Financial leverage
125 The measures of business risk is ---------. 3 Total Leverage leverage 1
Financial break even Operating break even Overall break
Break even point
126 The value of EBIT at which EPS is equal to Zero is known as -----------. 3 point point even point 2
Contribution/Quan
Contribution/EBIT EBIT/Contribution
127 Which of the following is the expression for operating leverage? 3 Contribution/EAT tity 1
128 An example of fixed asset is ---------. 4 Live stock Value stock Income stock All of the above 4
Working Capital Turnover measures the relationship of Working Capital with
Fixed assets Sales Purchases Stock
129 ---------. 4 1
The return which the company pays on borrowed fund is termed as --------------
Dividend Interest
130 . 4 Bonus All of the above 2
The situation where the receipts and payments of a firm are not perfectly
Sychronisation Non-synchronisation Short costs None of the above
131 coincide is known as -----------. 4 2
132 Forecasts covering periods of one year or less are considered ----------. 4 Short-term Long-term Medium-term None of these 1
When a concern has higher cash balance than its actual requirements, it is Outstanding
Excess balance Deficit balance Overdraft
133 referred to as -----------. 4 expenses 1
134 Every firm has to determine its cash balance to be -------------. 4 Excessive Inadequate Excess or inadequate Optimum 4
135 -------- is prepared to estimate cash inflow and outflows. 4 Sales budget Flexible budget Cash budget Fixed budget 3
Inventories plus
Inventories plus
receivables less Working capial plus Working capital
receivables less
payables prepayment short term debt plus less short term
payables
136 Working capital requirements is (WCR) --------------. 4 less accruals cash debt less cash 2
Equity plus long term Equity plus long term WCR plus short
debt less non-current debt plus non current WCR less short term term debt plus
137 Working capital is also known as ------------------ or -------------------. 4 assets assets debt less cash cash 1
Reducing trade Reducing trade Increasing trade Reducing
138 Short term cash flow improvement may not be achieved by --------------. 4 payables receivablaes payables inventories 1
Increasing long term Increasing equity Reducing capital Reducing long
139 Long term cash flow improvement may not be achieved by -------------. 4 liabilities capital expenditure term debt 4
Current assets / Current liabilities/ Inventory / Current Current liabilities /
140 The formula used to calculate current ratio is --------------. 4 Current liabilities Current assets liabilities Inventory 1
Gross working Excess working Deficit working
Net working capital
141 ------ is the difference between current assets and current liabilities. 4 capital capital capital 2
The time gap between the sales and actual sales is technically termed as
Operating cycle Operating law Operaing debt None of the above
142 ---------------. 4 1
-------- is concerned with decisions relating to current assets and current Working capital Purchase
Cash management Stock management
143 liabilities. 4 management management 3
Fixed assets turnover
Current assets Current liabilities Long-term debt
144 Marketable securities are included in ---------. 4 ratio 1
Marketable
Inventory Machinery Cash
145 Following is not a current asset --------------. 4 securities 2
146 These assets are normally converted ------------- into cash within a year. 4 Fixed assets Current asset Fictitious assets None of the above 2
147 Which of the following is external sources of cash? 4 Long term loans Short term borrowings Issue of new shares |All of the above 4
148 The standard liquid ratio is --------------. 4 02:01:00 01:02:00 01:01:00 01:03:00 3
A commercial paper, when issued by a company directly to the investor is
Direct paper Dealer paper Agent paper None of the above
149 called a -------------. 4 1
When a firm has to pay cash for contingencies which cannot be predicted or
Transaction motive Precautionary motive Speculative motive None of these
150 anticipated, this motive is termed as ---------------. 4 2
Deducted from
Added to opening
In cash flow method for preparing cash budget, payment of dividend and opening balance of Not included in cash
balance of cahs
151 prepaid payments are ---------------. 4 cash budget None of the above 1
 Which of the following method is based on technique of cash flow Cash accounting Projected balance Project forecast
152 management? 4 period sheet method method None of the above 3
Proposed issue of
Loan repayment Intereston loan Depreciation
153 Which of the following is not shown in Cash Budget? 4 capital 4
Difference in capital, Conservation
Accrual principle All of the above.
154 Which of the following is not considered which preparingcash budget? 4 and revenueitems principle 4
155 Current assets are also referred to as ------------. 4 Working capital Investment Inventory Lives stock 1
156 Net working capital is the excess of -------- over -------------. 4 Ca,cl Cash, ca Debt, ca None of the above 1
157 Working capital is also known as ------------------ or -------------------. 4 Cash, loan Revolving, circulating Long, short Cash, stock 2
158 Cash budget is a ___________ budget. 4 Short-term Long-term Both 1 and 2 None of the above 1
159 The gross working capital is a --------- concern concept. 4 Money Cash Going None of the above 3
The rate of return on investments ---------------- with the shortage of working
Increase Improve Defect Falls
160 capital. 4 4
Sources of cash flow |Amount of cash to be
during a particular received from cash
161 While preparing a cash budget the focus should be on ------------. 4 period flow resources Timing of cash inflow All of the above 4
No seasonal Wide seasonal Rare seasonal
162 Cash budget is more helpful in business concerns ------------. 4 fluctuations fluctuations fluctuations All of the above 2
The symptom large inventory accumulation in anticipation of price rise in Working capital Inventory turnover
Assets turnover ratio
163 future will be --------. 4 turnover ratio ratio All of the above 3
Which of the following marketable securities is issued by the U.S. Federal Negotiable certificate Repurchase
Commercial paper
164 Government? 4 of deposit agreement T-bills 4
Total time between
the mailing of the Time consumed in
check by the clearing the check Time during
customer ant the through the banking which received by
availability of cash to system Time the check in the the firm remains
165 Collection float is the ------------. 4 the receiving firm mail uncollected 1
Automated clearing
Depository transfer
Which of the following is not a standard method of transferring funds when house electronic Payable through
check
166 using concentration banking? 4 transfer Wire transfer drafr (PTD) 4
An orignial issue 30 Short term
An original issue 30
years Government corporate debt
year corporate with
bond with one year instruments with 9
one year remaining
Which of the following is least likely to be considered a short-term marketable remaining until final moths original
until final maturity
167 security? 4 maturity A 90 day treasury bill maturity 1
The optimal balance of marketable securities held to take care of probable
deficiencies in the firm's cash account is referred to as the ---------- segment in Ready cash Controllable cash Cash and cash
168 the firm's portfolio of short term marketable securities. 4 Free cash equivalent 1
169 Inventory Turnover measures the relationship of inventorywith ------------. 5 Average sales Cost of goods sold Total purchases Total assets 2
Minimizes total Minimizes total Minimizes total The required
170 EOQ is the order quantity that over our planning horizon. 5 ordering costs carrying costs inventory costs safety stock 3
171 _____ consist of final product that are ready for sale. 5 Finished goods Producers goods Consumers goods All of the above 1
The inventory system means all inventories including raw materials, work-in-
Abc Eoq Jit All of the above
172 progress and finished goods are received in time ----------. 5 3
It means the size of the order that will result in the lowest total of order cost Economic order
Reorder level Dangerous level None of the above
173 and carrying cost for an item of inventory. 5 quantity 1
174 It refers to goods in the intermediate stages of production. 5 Rawmaterial Work-in-progress Finished goods None of the above 2
When a concern maintains more inventory than its actual requirement, then it is
Deficit inventory Excessive inventory Stock-in-trade None of these
175 known as ----------------. 5 2
176 Every firm maintains a ---------- in order to guard against contingencies. 5 Minimum stock level Maximum stock level Reorder level Safety stock 4
177 ABC system ensures closer control on ____ costly items. 5 More Less Both a and b None of the above 2
178 Set-up cost is like a __________. 5 Variable cost Fixed cost Semi-variable cost Semi-fixed cost 2
179 The financial manager is directly concerned with ______. 5 Receivables Inventories Cash None of the above 2
It necessitates holding of inventories to meet the unexpected changes in
Transaction motive Speculative motive Precautionary motive None of the above
180 demand and in supply --------. 5 3
The automation in production will help to reduce inventories, improve ______
Quality Cash None of the above
181 and cut delivery time. 5 Quantitative 1
The goods which need more work before they become finished products for
Rawmaterial Work-in-progress Finished goods None of the above
182 sale are known as 5 2
Debtors turnover Fixed assets turnover Inventory turnover
Current ratio
183 These raios are calculated to minimise the investment in inventories. 5 ratio ratio raio 3
---------- refers to the stockpile of the products a firm is offering for sale and
Bills receivable Debtors Inventory Cash
184 the components that make up the product. 5 3
185 High debtors turnover ratio indicates --------. 5 High profitability High liquidity Low level of liquidity None of the above 2
The expenses involved in acquiring credit information about the customers to
Collection cost Capital cost Delinquency cost Default cost
186 decide upon credit sales is termed as --------. 5 1
187 Non-restrictive credit standards may lead to -----------. 5 More profit More bad debts Less bad debts Less profit 2
188 In ABC analysis ‘A’ class consist of items having ________. 5 Accurate records Good records Minimal records No records 1
It assumes that the Prices of materials
Demand may vary
The following is (are) the limitation of Economic Order Quantity assumption storage space is change throughout All of the above
throughout the year
189 (s). 5 unlimited the year 4
190 By _______ efficient productions runs may be achieved. 5 Holding Inventory Acquire Inventory Both a and b All of the above 1
191 Excess stock may become obsolete in _____. 5 Storage Wastage Energy All of the above 1
192 Every firm's stock level should be ---------------. 5 Excessive Inadequate Optimum All the above 3
193 The storage cost does not involves --------------. 5 Godown rent Insurance Spoilage cost Interest 4
When stock reaches this level, action for immediate purchase is necessary
Reorder level Minimum stock level Maximum stock level Danger level
194 -----------------. 5 4
Non availability of these parts at the required time may lead to stoppage of
Desirable Vital Essential None of the above
195 production -----------. 5 2
196 Lower degree of control exercised on these items -------------. 5 Category a Category b Category c All the above 3