vu acc501 Mid Term - Quiz No.18
vu acc501 Business Finance Quiz
This quiz belongs to book/course code vu acc501 Business Finance of vu organization. We have 30 quizzes available related to the book/course Business Finance. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Mid Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: Ann is interested in purchasing Teds factory. Since Ann is a poor negotiator, she hires Mary to negotiate a purchase price. Identify the parties to this transaction from the given options, keeping in view the agency theory:
Ann is the principal and Mary is the agent.
Mary is the principal and Ann is the agent.
Ted is the agent and Ann is the principal.
Mary is the principal and Ted is the agent.
Question 2: Business risk depends on which of the following risk of the firms assets
Systematic Risk
Diversifiable Risk
Unsystematic Risk
None of the given options
Question 3: A firm has cash cycle of 100 days. It has an inventory turnover of 5 and receivable turnover of 2. What would be its accounts payable turn over?
3.347 approximately
5.347 approximately
2.347 approximately
6.253 approximately
Question 4: If the variance or standard deviation is larger then the spread in returns will be:
Less
More
Same
None of the Above
Question 5: Financial policy is evaluated by which of the following?
Profit Margin
Total Assets Turnover
Debt-equity ratio
None of the given options
Question 6: Which of the following is NOT a shortcoming of Payback Rule?
Time value of money is ignored
It fails to consider risk differences
Simple and easy to calculate
None of the given options
Question 7: Which of the following is known as the group of assets such as stocks and bonds held by an investor ?
Stock Bundle
Portfolio
Capital Structure
None of the given options
Question 8: In how many years, an amount will be doubled at a discount rate of 8 percent?
3 years
6 years
9 years
Cannot be determined without more information
Question 9: The conflict of interest between stockholders and management is known as:
Agency problem
Interest conflict
Management conflict
Agency cost
Question 10: Which of the following statements is(are) CORRECT regarding a bond?
A bond is an evidence of debt issued by a corporation or a governmental body.
A bond represents a loan made by investors to the issuer.
When a corporation wishes to borrow from public on a long term basis, it does so by issuing or selling bonds.
All of the given options
