4/26/22, 7:08 PM Quiz 2

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MGT3102MBA2021FINB
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Quiz 2

Started on Tuesday, 26 April 2022, 6:43 PM

State Finished
Completed on Tuesday, 26 April 2022, 7:07 PM
Time taken 23 mins 14 secs

Question 1 EOQ is the order quantity that minimizes ...........................

Complete

Marked out of Select one:

1.00
a. Ordering Cost + Carrying Cost

b. Cost of Financing

c. Carrying Cost

d. Ordering Cost

Question 2 The term Net Working Capital refers to:

Complete

Marked out of Select one:

1.00
a. None of the above

b. Total assets minus total liabilities

c. Current assets minus

current liabilities

d. Total current assets

Question 3 Financing decision is also known as capital budgeting decision.

Complete

Marked out of Select one:

1.00
True

False

Question 4
The dividend on equity shares has to be paid ...................
Complete

Marked out of Select one:

1.00
a. Quarterly

b. None of these

c. Annually

d. Bi-annually

Question 5
Which of the following is related to credit policy?
Complete

Marked out of Select one:

1.00
a. Credit Standards

b. All of these

c. Credit Terms

d. Collection Efforts
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4/26/22, 7:08 PM Quiz 2

Question 6 While taking dividend

decision, finance manager has to create a balance between risk and return.

Complete

Marked out of Select one:

1.00
True

False

Question 7
While taking dividend decision, finance manager
has to create a balance between liquidity and profitability.

Complete

Marked out of Select one:

1.00
True

False

Question 8 Temporary Working Capital is the working capital

over and above the Permanent Working Capital.

Complete

Marked out of Select one:

1.00
True

False

Question 9
The share of ABC Ltd. is selling in market at a price of Rs. 150 (Face Value- Rs. 5 and Book Value Rs. 10). The company has
Complete declared 50% dividend. How much will be the dividend amount per share? 
Marked out of
1.00 Select one:
a. None of these

b. Rs. 2.5

c. Rs. 5

d. Rs. 75

Question 10 Operating leverage is related to the capital structure of a company.

Complete

Marked out of Select one:

1.00
True

False

Question 11
Which of the following is TRUE?
Complete

Marked out of Select one:

1.00
a. Gross working capital is equal to net working
capital

b. All of the above

c. Gross working capital is less than

net working capital

d. Gross working capital is more than net working capital

Question 12
Dividend is calculated on the market value of the share.
Complete

Marked out of Select one:

1.00
True

False

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4/26/22, 7:08 PM Quiz 2

Question 13 All other things being the same, if a firm

raises funds by selling common stock, it will increase its degree of financial
Complete leverage.

Marked out of
1.00 Select one:
True

False

Question 14 Payment of dividend is a legal compulsion for a

company.

Complete

Marked out of Select one:

1.00
True

False

Question 15 Which of the following is also known as Profit Appropriation Decision?

Complete

Marked out of Select one:

1.00
a. Liquidity Decision

b. None of these?

c. Working Capital Management

d. Capital Structure Decision

Question 16
If a firm has a DFL of 5, it means:

Complete

Marked out of Select one:

1.00
a. All of the above

b. If EBIT rises by 1%, EPS will rise by 5%.

c. If EBIT falls by 1%, EPS will rise by 5%.

d. If EBIT rises by 1%, EPS will fall by 5%.

Question 17
Financial lease is long term in nature while operating lease is short term in nature.
Complete

Marked out of Select one:

1.00
True

False

Question 18 Securitization is a process of paying dividend to equity share holders.

Complete

Marked out of Select one:

1.00
True

False

Question 19 While managing the cash flows the inflows should

be accelerated and outflows should be decelerated.

Complete

Marked out of Select one:

1.00
True

False

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4/26/22, 7:08 PM Quiz 2

Question 20 Financial leverage is caused by ......................

Complete

Marked out of Select one:

1.00
a. Presence of debt in capital structure

b. Cost structure of the company

c. All of these 

d. Presence of equity in capital structure

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