Management Sciences MCQs – Page 605

✅ D. Either because both options are of equal value

Option A : Rs. 1,000 because it has the higher future value Option B : Rs. 1,000 because you receive it sooner Option C : Rs. 1,050 because it is more money Option D : Either because both options are of equal value Option E : Correct Answer : Either because both options are of equal value Read more

✅ A. Liquidity Ratios

Option A : Liquidity Ratios Option B : Long-term Solvency Ratios Option C : Profitability Ratios Option D : Market Value Ratios Option E : Correct Answer : Liquidity Ratios Read more

✅ C. joint stock company

Option A : sole proprietorship Option B : partnership Option C : joint stock company Option D : none of the above Option E : Correct Answer : joint stock company Read more

✅ A. Assets = Liabilities “ Stockholders equity

Option A : Assets = Liabilities “ Stockholders equity Option B : Assets + Liabilities = Stockholders equity Option C : Assets + Stockholders equity = Liabilities Option D : Assets = Liabilities + Stockholders equity Option E : Correct Answer : Assets = Liabilities + Stockholder’s equity Read more

✅ B. Acid-test Ratio

Option A : Current Ratio Option B : Acid-test Ratio Option C : Cash Ratio Option D : None of the given options Option E : Correct Answer : Acid-test Ratio Read more

✅ D. Perpetuity

Option A : Ordinary Annuity Option B : Special Annuity Option C : Annuity Due Option D : Perpetuity Option E : Correct Answer : Perpetuity Read more

✅ C. 1

Option A : -1 Option B : 0 Option C : 1 Option D : 2 Option E : Correct Answer : 1 Read more

✅ C. Trade credit

Option A : Bank loan Option B : Commercial papers Option C : Trade credit Option D : None of the given options. Option E : Correct Answer : Trade credit Read more

✅ A. Financial risk

Option A : Financial risk Option B : Portfolio risk Option C : Operating risk Option D : Market risk Option E : Correct Answer : Financial risk Read more

✅ A. Homemade leverage

Option A : Homemade leverage Option B : Financial leverage Option C : Operating leverage Option D : None of the given option Option E : Correct Answer : Homemade leverage Read more

✅ B. Opportunity cost

Option A : Sunk cost Option B : Opportunity cost Option C : Financing cost Option D : All of the given options Option E : Correct Answer : Opportunity cost Read more

✅ B. Dividend Growth Model

Option A : Dividend Price Model Option B : Dividend Growth Model Option C : Dividend Policy Model Option D : All of the given options Option E : Correct Answer : Dividend Growth Model Read more

✅ B. Ideal to rank the mutually exclusive investments

Option A : Most widely used Option B : Ideal to rank the mutually exclusive investments Option C : Easily communicated and understood Option D : Can be estimated even without knowing the discount rate Option E : Correct Answer : Ideal to rank the mutually exclusive investments Read more

✅ A. Ordinary annuity

Option A : Ordinary annuity Option B : Annuity due Option C : Perpetuity Option D : None of the given options Option E : Correct Answer : Ordinary annuity Read more

✅ A. Agency problem

Option A : Agency problem Option B : Interest conflict Option C : Management conflict Option D : Agency cost Option E : Correct Answer : Agency problem Read more

✅ B. Long-term Solvency Ratios

Option A : Liquidity Ratios Option B : Long-term Solvency Ratios Option C : Asset Management Ratios Option D : Profitability Ratios Option E : Correct Answer : Long-term Solvency Ratios Read more

✅ B. It earns profit not only on principal but also on interest.

Option A : It is the most basic form of calculating interest. Option B : It earns profit not only on principal but also on interest. Option C : It is calculated by multiplying principal by rate multiplied by tim Option D : It does not take into account the accumulated interest for calculation. Option E : Correct Answer :… Read more

✅ A. Higher

Option A : Higher Option B : Lower Option C : Constant Option D : None of these Option E : Correct Answer : Higher Read more

✅ A. Bond Price < Par Value and YTM > coupon rate

Option A : Bond Price coupon rate Option B : Bond Price > Par Value and YTM > coupon rate Option C : Bond Price > Par Value and YTM < coupon rate Option D : Bond Price < Par Value and YTM < coupon rate Option E : Correct Answer : Bond Price coupon rate Read more

✅ B. To maintain a low ratio of current assets to sales

Option A : To maintain a high ratio of current assets to sales Option B : To maintain a low ratio of current assets to sales Option C : To less short-term debt and more long-term debt Option D : To more short-term debt and less long-term debt Option E : Correct Answer : To maintain a low ratio of… Read more