Finance Archives - Online MCQs Test Preparation for Competitive Exams

Financial policy is evaluated by which of the following?

A. Total Assets Turnover
B. Debt-equity ratio
C. Profit Margin
D. None of the given options

Option: B

Product costs include which of the following?

A. Administrative expenses
B. Manufacturing overhead
C. General expenses
D. Selling expenses

Option: B

Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the ?

A. Shareholders
B. Subordinates
C. Employees
D. Workers

Option: A

The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company’s ?

A. Year-to-Year activities
B. Day-to-Day activities
C. Managerial activities
D. Financial activities

Option: B

Corporate governance encompasses the relationship among a company’s ?

A. Shareholders, board of directors and senior management
B. Shareholders and senior management
C. Board of directors and senior management
D. Shareholders and board of director

Option: A

The system by which companies are managed and controlled is known as ?

A. Corporate Governance
B. Management System
C. Strategic System
D. Internal System

Option: A

All the constituencies with a stake in the fortunes of the company are termed as ?

A. Chief executives
B. Stakeholders
C. Directors
D. Subordinates

Option: B

Annual cash dividends divided by annual earnings; or alternatively, dividends per share divided by earning per share is termed as ?

A. Earning per share ratio
B. Dividend payout ratio
C. Proposed dividend ratio
D. Expected dividend ratio

Option: B

The investment decision is the most important of the firm’s three major decisions, when it comes to ?

A. Value addition
B. Value proposition
C. Value creation
D. Value deletion

Option: C

Having some overall goal in mind, financial management is concerned with ?

A. Acquisition of assets
B.All of them
C. Financing of assets
D. Management of assets

Option: B

___________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind?

A. Profit maximization
B. Social responsibility
C. Financial management
D. Agency theory

Option: C

One reason why adjustable-rate mortgages (ARMs) have become popular has to do with the impact that they have on the interest rate risk that is borne by the parties involved. If interest rates were to rise on a level-payment mortgage (LPM) the interest rate risk of the loan would typically be borne by

A. neither the borrower nor the lender
B. the lender only
C. the borrower only
D. both the borrower and lender

Option: D

Given the following information on an interest-only mortgage, calculate the monthly mortgage payment. Loan amount: $56,000, Term: 15 years, Interest Rate: 7.5%.

A. 350
B. 4200
C. $169.13
D. $519.13

Option: A

Assume that a borrower has a choice between two comparable fixed-rate mortgage loans with the same interest rate, but different mortgage terms, one being a 30-year mortgage and the other a 15-year mortgage. Under financially unconstrained circumstances, which of the following statements best describes the borrowers preference?

A. The borrower would be indifferent between the two mortgages.
B. The borrower would prefer the 15-year mortgage.
C. The borrower would prefer the 30-year mortgage.
D. The borrower is unable to compare mortgage loans of two different maturities.

Option: A

Mortgage is ____ in the immoveable property.

A. Transfer of title
B. Transfer of interest
C. Hypothecation
D. Pledge

Option: B