vu acc501 Mid Term - Quiz No.4
vu acc501 Business Finance Quiz
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Question 1: __________ involves the sale of used securities from one investor to
Primary Market
Secondary Market
Tertiary Market
None of the given options
Question 2: Which of the following comes under the head of discounted cash flow criteria for capital budgeting decisions?
Payback Period
Net Present Value
Average Accounting Return
None of the given options
Question 3: Which of the following allows a company to repurchase part or all of the bond issue at a stated price?
Repayment
Seniority
Call provision
Protective covenants
Question 4: Which one of the given options involves the sale of new securities from the issuing company to general public?
Secondary market
Primary market
Capital market
Money market
Question 5: Mr. A has just recently started a business by investing a capital of Rs. 500,000. He will be the only owner of the business and also enjoy all the profits of the business. Which type of business is being employed by Mr. A?
Sole-proprietorship
Partnership
Corporation
None of the given options
Question 6: Which of the following set of cash flows represents the change in the firms total cash flow that occurs as direct result of accepting the project?
Relevant Cash Flows
Incremental Cash Flows
Negative Cash Flows
All of the given option
Question 7: Which of the following term refers to establish of a standard to follow for comparison?
Benchmarking
Standardizing
Comparison
Evaluation
Question 8: __________ are short-term, temporary investments that can be readily converted into cash.
marketable securities
Cash equivalents
Treasury bills
All of the given options
Question 9: A risk that influences a large number of assets is known as:
Systematic Risk
Market Risk
Non-diversifiable Risk
All of the given options
Question 10: Suppose, Ilyas Corporation is one of the dominant firms in electronics equipment industry. Its policy is very clear about dealing with stackholders. It pays out 30% of its income in the form of dividend. If it pays a total sum of Rs.150 millions as a dividend, then what would be the amount transferred to the retained earning balance from current year profit?
Rs.150 millions
Rs.250 millions
Rs.350 millions
Rs.500 millions