vu acc501 Mid Term - Quiz No.23
vu acc501 Business Finance Quiz
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Question 1: Which of the following forms of business organizations is created as a distinct legal entity owned by one or more individuals or entities?
Sole-proprietorship
General Partnership
Limited Partnership
Corporation
Question 2: While making Common-Size statement, Balance Sheet items are shown as a percentage of :
Total Assets
Total Liabilities
Total Capital
Net Profit
Question 3: You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
Rs. 1,000 because it has the higher future value
Rs. 1,000 because you receive it sooner
Rs. 1,050 because it is more money
Either because both options are of equal value
Question 4: Suppose Mehran Corporation is dealing in the Automobile industry. Based on projected costs and sales, it expects that the cash flows over the 3-year life of the project will be Rs.5, 000,000 in first year, Rs.7, 000,000 in the next year and Rs.8, 000,000 in the last year. This project would cost about Rs. 10,000,000.The net present value of the project would be __________, if discount rate is assumed to be 25%.
Rs.2, 576, 000
Rs.3, 576, 000
Rs.1, 576, 000
Rs.4, 576, 000
Question 5: A portion of profits, which a company distributes among its shareholders, is known as:
Dividends
Retained Earnings
Capital Gain
None of the given options
Question 6: The process of planning and managing a firms long-term investments is called:
Planning Process
Capital Structure
Capital Budgeting
Managing Process