-
question_answer1)
Which one is not the objective of financial management?
A)
Wealth maximisation done
clear
B)
Profit maximisation done
clear
C)
Maintenance of liquidity done
clear
D)
Shortage of funds done
clear
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question_answer2)
Which source of finance leads to dilution of managements control over the business?
A)
Retained earnings done
clear
B)
Debenture done
clear
C)
Preference share done
clear
D)
Equity share capital done
clear
View Solution play_arrow
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question_answer3)
Financing decisions are influenced by
A)
Cost of raising funds done
clear
B)
Floatation cost done
clear
C)
Both (a) and (b) done
clear
D)
Neither (a) nor (b) done
clear
View Solution play_arrow
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question_answer4)
Which decisions are taken by the financial manager?
A)
Investment Decisions done
clear
B)
Financing Decisions done
clear
C)
Dividend Decisions done
clear
D)
All the above done
clear
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question_answer5)
Net working capital refers to
A)
Current assets - Current liabilities done
clear
B)
Current assets + Current liabilities done
clear
C)
Current liabilities - Current assets done
clear
D)
None of the above done
clear
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question_answer6)
Financial management aims at
A)
Ensuring availability of enough funds done
clear
B)
Reducing the cost of funds procured done
clear
C)
Effective deployment of funds done
clear
D)
All of the above done
clear
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question_answer7)
A long-term investment decision is called a
A)
Capital budgeting decision done
clear
B)
Working capital decision done
clear
C)
Financial decision done
clear
D)
Dividend decision done
clear
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question_answer8)
Borrowing @ 10% and the rate @ 30% means the after tax cost of debt is
A)
20% done
clear
B)
7% done
clear
C)
3% done
clear
D)
10% done
clear
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question_answer9)
Decision regarding amount of finance to be raised from various sources is a
A)
Working capital done
clear
B)
financing decision done
clear
C)
Investment decision done
clear
D)
Dividend decision done
clear
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question_answer10)
Management of all matters related to an organisation's finance is called
A)
cash inflows and outflows done
clear
B)
Allocation of resources done
clear
C)
Financial management done
clear
D)
Finance done
clear
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question_answer11)
Which of the following is not an element of financial management?
A)
Allocation of resources done
clear
B)
Financial decision-making done
clear
C)
Financial planning done
clear
D)
Financial control done
clear
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question_answer12)
The most important goal of financial management is
A)
Profit maximisation done
clear
B)
Matching income and expenditure done
clear
C)
Using business assets effectively done
clear
D)
Health maximization done
clear
View Solution play_arrow
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question_answer13)
Which of the following statements is not true?
A)
Financing decision is one of the important finance decisions done
clear
B)
Financial management is useful only for big enterprises done
clear
C)
Efficient management of every business is closely linked with efficient management of its finances done
clear
D)
None of the above done
clear
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question_answer14)
Early in the history of finances, an important issue was
A)
Liquidity done
clear
B)
capital structure done
clear
C)
Technology done
clear
D)
financing options done
clear
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question_answer15)
Financial management is a _____ process.
A)
Dynamic done
clear
B)
rigid done
clear
C)
Continuous done
clear
D)
discontinuous done
clear
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question_answer16)
What is ignored in profit maximisation?
A)
Wealth done
clear
B)
Net value done
clear
C)
Time value of money done
clear
D)
None of the above done
clear
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question_answer17)
Raising more capital than required denotes situation of _____.
A)
Over-raising done
clear
B)
excess of capital done
clear
C)
Over liquidity done
clear
D)
tangible done
clear
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question_answer18)
Which of the following statements is/are incorrect?
A)
Capital budgeting is not the technique of capital structure analysis done
clear
B)
The term 'capital structure' includes also the financial structure done
clear
C)
Both and done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer19)
The policy concerning quantum of profits to be distributed as dividend is called
A)
Dividend policy done
clear
B)
distribution policy done
clear
C)
Share policy done
clear
D)
sale policy done
clear
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question_answer20)
How to achieve wealth maximisation?
A)
Avoid high level of risks done
clear
B)
Reduction in cost done
clear
C)
Pay dividends done
clear
D)
All of the above done
clear
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question_answer21)
Financial management is a part of
A)
Business management done
clear
B)
Financial management done
clear
C)
Management accounting done
clear
D)
Structural management done
clear
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question_answer22)
The financial management is responsible for the _____function of the concern.
A)
Finance done
clear
B)
marketing done
clear
C)
Accounting done
clear
D)
managerial done
clear
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question_answer23)
The rate of dividend of preference shares is decided at the time of
A)
Issue done
clear
B)
Dissolution of company done
clear
C)
Payment done
clear
D)
None of the above done
clear
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question_answer24)
Investment decision include
A)
Expansion of existing business done
clear
B)
Expansion of new business done
clear
C)
Replacement done
clear
D)
All of the above done
clear
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question_answer25)
Dividend is the share of profit of company dividend amongst its
A)
Shareholders done
clear
B)
brokers done
clear
C)
Debenture holders done
clear
D)
none of the above done
clear
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question_answer26)
Stock dividend _____ the number of equity shares.
A)
Increases done
clear
B)
decreases done
clear
C)
Neutralize done
clear
D)
Both and done
clear
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question_answer27)
Basic feature of an ideal financial plan is
A)
Simplicity done
clear
B)
rigidity done
clear
C)
Flexibility done
clear
D)
foresight done
clear
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question_answer28)
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. |
Statement I Under capitalization leads to over capitalisation. |
Statement II 'Capital' and 'Capitalisation' are synonymous terms. |
Codes
A)
Both statements are correct done
clear
B)
Both statements are incorrect done
clear
C)
Statement I is correct, but Statement II is incorrect done
clear
D)
Statement I is incorrect, but Statement II is correct done
clear
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question_answer29)
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. |
Statement I Financial planning is not an essential financial process. |
Statement II Financial planning may be short-term, medium-term or long-term. |
Codes
A)
Both statements are correct done
clear
B)
Both statements are incorrect done
clear
C)
Statement I is correct, but Statement II is incorrect done
clear
D)
Statement I is incorrect, but Statement II is correct done
clear
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question_answer30)
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. |
Statement I A financial manager's concern must be to maintain liquidity rather than profitability. |
Statement II Main objective of financial management is maximisation of profits. |
Codes
A)
Both statements are correct done
clear
B)
Both statements are incorrect done
clear
C)
Statement I is correct, but Statement II is incorrect done
clear
D)
Statement I is incorrect, but Statement II is correct done
clear
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question_answer31)
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. |
Statement I Traditional approach restricted the scope of financial management to arrange funds. |
Statement II Efficient management of every business is closely linked with efficient management of its finances. |
Codes
A)
Both statements are correct done
clear
B)
Both statements are incorrect done
clear
C)
Statement I is correct, but Statement II is incorrect done
clear
D)
Statement I is incorrect, but Statement II is correct done
clear
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question_answer32)
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. |
Statement I The objective of finance function is wealth maximisation. |
Statement II The objective of finance function is profit maximisation. |
Codes
A)
Both statements are correct done
clear
B)
Both statements are incorrect done
clear
C)
Statement I is correct, but Statement II is incorrect done
clear
D)
Statement I is incorrect, but Statement II is correct done
clear
View Solution play_arrow
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question_answer33)
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. |
Statement I Future financial requirement of the company influence dividend decision. |
Statement II During boom period, companies are usually in a race of increasing rate of dividend. |
Codes
A)
Both statements are correct done
clear
B)
Both statements are incorrect done
clear
C)
Statement I is correct, but Statement II is incorrect done
clear
D)
Statement I is incorrect, but Statement II is correct done
clear
View Solution play_arrow
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question_answer34)
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. |
Statement I Dividends can be paid only when there are profits. |
Statement II Dividends can be paid when there are losses. |
Codes
A)
Both statements are correct done
clear
B)
Both statements are incorrect done
clear
C)
Statement I is correct, but Statement II is incorrect done
clear
D)
Statement I is incorrect, but Statement II is correct done
clear
View Solution play_arrow
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question_answer35)
Direction: The following items consist of two statements, Statement I and Statement II. You are to examine these two statements carefully and select the answer to these items using the codes given below. |
Statement I Overcapitalisation is desirable. |
Statement II Undercapitalisation is more desirable. |
Codes
A)
Both statements are correct done
clear
B)
Both statements are incorrect done
clear
C)
Statement I is correct, but Statement II is incorrect done
clear
D)
Statement I is incorrect, but Statement II is correct done
clear
View Solution play_arrow
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question_answer36)
Long-term finance is required for the purchases of _____assets.
A)
Fixed done
clear
B)
tangible done
clear
C)
Intangible done
clear
D)
variable done
clear
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question_answer37)
Financial management is least concern for
A)
Financial forecasting done
clear
B)
Allocation of funds done
clear
C)
Establishing assets management done
clear
D)
Gross profit ratio done
clear
View Solution play_arrow
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question_answer38)
Which of the following is/are not a function of financial management?
A)
Planning for funds done
clear
B)
Raising of funds done
clear
C)
Allocation of funds done
clear
D)
All of the above done
clear
View Solution play_arrow
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question_answer39)
_____ refers to make up of a firm's capitalisation.
A)
Capital done
clear
B)
Capital structure done
clear
C)
Funds done
clear
D)
None of the above done
clear
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question_answer40)
Retained earning is _____ a cost free source of capital.
A)
Not done
clear
B)
sometimes done
clear
C)
Compulsorily done
clear
D)
consistently done
clear
View Solution play_arrow
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question_answer41)
Which of the following pairs is/are not correctly matched?
A)
B)
C)
Both (a) and (b) done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer42)
Which of the following statements is/are incorrect?
A)
Finance is required only at the time of promotion of business done
clear
B)
Importance of finance cannot be over-emphasised done
clear
C)
Both (a) and (b) done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer43)
"Dividend policy determines the division of earnings between payments to shareholders and retained earnings". This statement was said by
A)
Weston done
clear
B)
Gitman done
clear
C)
Brigham done
clear
D)
Both (a) and (b) done
clear
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question_answer44)
The concept of cost of capital can also be explained in terms of _____.
A)
Opportunity cost done
clear
B)
variable cost done
clear
C)
Fixed cost done
clear
D)
capital cost done
clear
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question_answer45)
Match the following
List I | List II |
A. | Fixed capital | 1. | ___refers to make-up of a firm's capitalisation. |
B. | Normal rate of return | 2. | ___ is the cause of overcapitalisation |
C. | Liberal dividend policy | 3. | Earnings per share \[\div \]Market price per share =___ |
D. | Capital | 4. | ___is the funds required for an acquisition of assets. |
Codes
A)
A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done
clear
B)
A\[\to \]2, B\[\to \]1, C\[\to \]3, D\[\to \]4 done
clear
C)
A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done
clear
D)
A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 done
clear
View Solution play_arrow
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question_answer46)
Which of the following limitations is/are limitation of profit maximisation objectives?
A)
Financial management ignores the value of money done
clear
B)
Financial management overlooks quality aspect of profit from future activities done
clear
C)
Ignores social responsibility of business done
clear
D)
All of the above done
clear
View Solution play_arrow
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question_answer47)
Cost of capital from all the sources of funds is called
A)
Specific cost done
clear
B)
composite cost done
clear
C)
Implicit cost done
clear
D)
simple average cost done
clear
View Solution play_arrow
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question_answer48)
Which of the following statements is incorrect?
A)
Purchase of fixed assets is a day-to-day expense done
clear
B)
Business finance means money and credit employed in business firms done
clear
C)
Without adequate finance, business may run into difficulties done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer49)
Which of the following pairs is/are not correctly matched?
A)
B)
C)
Both (a) and (b) done
clear
D)
All of the above done
clear
View Solution play_arrow
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question_answer50)
Which one of the following pairs is correctly matched?
A)
B)
C)
D)
View Solution play_arrow
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question_answer51)
Match the following
List I (Concepts) | List II (Advantages) |
A. | Profit maximisation | 1. | Added flexibility |
B. | Under capitalisation | 2. | Impact on society through factor payments |
C. | Over capitalisation | 3. | Maximisation of profitability of the firm |
D. | Financial management | 4. | Higher rate of dividend |
Codes
A)
A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 done
clear
B)
A\[\to \]2, B\[\to \]4, C\[\to \]1, D\[\to \]3 done
clear
C)
A\[\to \]3, B\[\to \]2, C\[\to \]1, D\[\to \]4 done
clear
D)
A\[\to \]1, B\[\to \]2, C\[\to \]3, D\[\to \]4 done
clear
View Solution play_arrow
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question_answer52)
Which of the following statements is/are incorrect?
A)
Cost of capital means the rate of interest at which the capital has been collected done
clear
B)
Payback is one of the methods of evaluating investment proposals done
clear
C)
Both (a) and (b) done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer53)
Which is not the technique of capital structure analysis?
A)
Trading on equity done
clear
B)
Capital gearing done
clear
C)
Capital budgeting done
clear
D)
Cost of capital done
clear
View Solution play_arrow
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question_answer54)
Which of the following is/are included under causes of under capitalisation?
A)
Under estimation of income done
clear
B)
Promotion during deflation done
clear
C)
Conservative dividend policy done
clear
D)
All of the above done
clear
View Solution play_arrow
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question_answer55)
The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated by
A)
Traditional approach done
clear
B)
Net income approach done
clear
C)
net operating income approach done
clear
D)
MM approach done
clear
View Solution play_arrow
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question_answer56)
Which of the following pairs is/are correctly matched?
A)
B)
C)
D)
View Solution play_arrow
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question_answer57)
Match the following
List I (Concepts) | List II (Disadvantages) |
A. | Under capitalisation | 1. | Ignores time patterns of returns |
B. | Over capitalisation | 2. | Increase in speculative activities |
C. | Profit maximisation | 3. | Decline in value of maximisation securities |
Codes
A)
A\[\to \]3, B\[\to \]1, C\[\to \]2 done
clear
B)
A\[\to \]1, B\[\to \]2, C\[\to \]3 done
clear
C)
A\[\to \]3, B\[\to \]2, C\[\to \]1 done
clear
D)
A\[\to \]2, B\[\to \]3, C\[\to \]1 done
clear
View Solution play_arrow
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question_answer58)
Which of the following statements is/are incorrect?
A)
Undercapitalisation leads to overcapitalisation done
clear
B)
Capital and Capitalisation are synonymous terms done
clear
C)
Both (a) and (b) done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer59)
The main reason for adjustments incapital structures include
A)
To reduce the cost burden done
clear
B)
To capitalise the retained earnings done
clear
C)
To simplify the capital structure done
clear
D)
All of the above done
clear
View Solution play_arrow
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question_answer60)
Capital structure denotes the
A)
Capital mix done
clear
B)
financing mix done
clear
C)
Equity mix done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer61)
Which of the following statements is/are incorrect?
A)
Finance function is part of the functions of the accountant done
clear
B)
Finance function is concerned with the procurement of funds and not with their utilisation done
clear
C)
Both (a) and (b) done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer62)
Which of the following statements is correct?
A)
The cost of retained earnings is always less than the cost of external equity done
clear
B)
The cost of external equity is always less than the cost of retained earnings done
clear
C)
The cost of retained earnings is power than the cost of external equity in presence of floatation costs done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer63)
Which of the following statements is correct regarding calculation of weighted cost of capital?
A)
Retained earnings are always excluded done
clear
B)
Preference capital is given more weight done
clear
C)
Cost of issue is considered done
clear
D)
Weights are always based on the book values done
clear
View Solution play_arrow
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question_answer64)
Which of the following statements is/are incorrect?
A)
Retained earnings have no cost because no interest or dividend is paid on them done
clear
B)
Cost of capital means the minimum rate of return, which a company should get on its investment done
clear
C)
Both (a) and (b) done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer65)
To achieve wealth maximization, the finance manager has to take careful decisions in case of
A)
Investment done
clear
B)
financing done
clear
C)
Dividend done
clear
D)
All of these done
clear
View Solution play_arrow
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question_answer66)
Financial management is not required to
A)
Determine the financial assets done
clear
B)
Effectively arrange the funds done
clear
C)
Manages the efficiency of the employees done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer67)
Financial management is least concern for
A)
Financial forecasting done
clear
B)
Allocation of funds done
clear
C)
Establishing assets management done
clear
D)
Gross profit ratio done
clear
View Solution play_arrow
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question_answer68)
Cost of capital does not mean
A)
Cut off rate decided by management done
clear
B)
Rate of interest done
clear
C)
Expectations of investors for dividend done
clear
D)
Money paid to SEBI for permission to acquire capital done
clear
View Solution play_arrow
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question_answer69)
Which of the following is not very much relevant in dividend decision?
A)
Availability of disposable profit done
clear
B)
Inventories expectations for dividend done
clear
C)
Capital market conditions done
clear
D)
Industry practice done
clear
View Solution play_arrow
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question_answer70)
Capital structure designing has nothing to do with
A)
Profitability done
clear
B)
solvency done
clear
C)
Flexibility done
clear
D)
transferability done
clear
View Solution play_arrow
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question_answer71)
Capital structure represents
A)
ratio between different forms of capital done
clear
B)
All liabilities done
clear
C)
All assets done
clear
D)
Assets and liabilities done
clear
View Solution play_arrow
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question_answer72)
Dividend policy of a company mainly concerns with |
I. dividend payout. |
II. stability of dividend. |
Which of the options given above is/are correct? |
A)
Only I done
clear
B)
Only II done
clear
C)
Both I and II done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer73)
Which of the following is not used to estimate cost of equity capital?
A)
External yield criterion done
clear
B)
Dividend plus growth rate done
clear
C)
Equity capitalisation approach done
clear
D)
Capital asset pricing model done
clear
View Solution play_arrow
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question_answer74)
Basic objective of financial management is
A)
Maximisation of profits done
clear
B)
Profit planning of the organisation done
clear
C)
Maximisation of shareholder's wealth done
clear
D)
Ensuring financial discipline in the Organisation done
clear
View Solution play_arrow
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question_answer75)
According to which of the following, the firm's market value is not affected by capital structure?
A)
MM hypothesis done
clear
B)
cet income approach done
clear
C)
The traditional view done
clear
D)
None of the above done
clear
View Solution play_arrow
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question_answer76)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Finance is the life blood of business. |
Reason (R) Finance very essential for the smooth running of the business. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer77)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Finance fulfills only the beginning requirement of the business. |
Reason (R) Finance is needed only to promote business. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer78)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Financial management is an imaginative function. |
Reason (R) Financial management, is one of the functional areas of management. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer79)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Effective and efficient management of finance enables the firm to prosper and grow. |
Reason (R) Without adequate finance, business can survive only for a short time. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
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question_answer80)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) A business firm is usually a profit earning concern. |
Reason (R) Its earnings depend upon the efficient utilisation of funds. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer81)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) The need for financial planning in a concern can be over-emphasised. |
Reason (R) Financial planning helps to provide ahead for any more funds, if required. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer82)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Financial management provide the base for success of promotion. |
Reason (R) Sound financial plan is very necessary for the success of business enterprise. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer83)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) The value of the concern is determined only by profitability. |
Reason (R) Financial decisions which increase the profitability will decrease the value of the firm. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer84)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Financial management process begins with the financial planning and decisions. |
Reason (R) Financial management process does not need feedback system. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer85)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Risk principle of capital structure is one that minimise cost of capital structure. |
Reason (R) According to this principle, reliance is placed more on equity for financial purpose. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer86)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) The capital structure should involve minimum risk of financial insolvency. |
Reason (R) The use of excessive debt threatens the solvency of the company. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer87)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Traditional approach to financial management ignore routine problems. |
Reason (R) It does not lay focus on day-to-day financial problems of business enterprises. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer88)
Direction: In the questions given below are two statements labelled as Assertion and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Modem approach is not a continuous process. |
Reason (R) Financial manager has to play an important role only at the beginning of enterprise. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer89)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Routine function of finance manager include record keeping and reporting. |
Reason (R) Preparation of various financial statements is not a function of finance manager. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer90)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) Business can survive without earning profit. |
Reason (R) Profit earning is the main aim of every economic activity. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer91)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) A sound financial plan should be rigid. |
Reason (R) In a financing programme, flexibility for future should not be allowed. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow
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question_answer92)
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct? |
Assertion (A) The risk involved in the business should not be discussed in the beginning. |
Reason (R) The business having more risks should issue ownership securities only. |
Codes
A)
Both A and R are true and R is the correct explanation of A done
clear
B)
Both A and R are true, but R is not the correct explanation of A done
clear
C)
A is true, but R is false done
clear
D)
A is false, but R is true done
clear
View Solution play_arrow