The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:

A: Discounting

B: Compounding

C: Factorization

D: None of the given options

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Discounting

You need Rs. 10,000 to buy a new television. If you have Rs. 6,000 to invest at 5 percent compounded annually, how long will you have to wait to buy the television?

A: 8.42 years

B: 10.51 years

C: 15.75 years

D: 18.78 years

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10.51 years

In which of the following type of annuity, cash flows occur at the beginning of each period?

A: Ordinary annuity

B: Annuity due

C: Perpetuity

D: None of the given options

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Annuity due

Which of the given area is NOT addressed by Business Finance?

A: Financing

B: Investing

C: Managing day today expenses

D: None of the given options

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None of the given options

A company having a current ratio of 1 will have ________ net working capital.

A: Positive

B: Negative

C: zero

D: None of the given options

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zero

Business Finance addresses which of the following?

A: Capital budgeting

B: Capital structure

C: Working capital management

D: All of the given options

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All of the given options

In which type of business, all owners share in gains and losses and all have unlimited liability for all business debts?

A: Sole-proprietorship

B: General Partnership

C: Limited Partnerhsip

D: Corporation

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General Partnership

Which of the following is measured by retention ratio?

A: Operating efficiency

B: Asset use efficiency

C: Financial policy

D: Dividend policy

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Dividend policy

How many years will it take to pay off a Rs. 11,000 loan with a Rs. 1,241.08 annual payment and a 5% interest rate?

A: 6 years

B: 12 years

C: 24 years

D: 48 years

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12 years

Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?

A: Fluctuations Risk

B: Interest Rate Risk

C: Real-Time Risk

D: Inflation Risk

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Interest Rate Risk

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