vu mgt201 Final Term - Quiz No.15
vu mgt201 Financial Management Quiz
This quiz belongs to book/course code vu mgt201 Financial Management of vu organization. We have 24 quizzes available related to the book/course Financial Management. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final 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: In the breakeven formula, Price - Variable Cost is called the __________.
breakeven point
leverage
contribution margin
none of the above
Question 2: Which of the following types of firms may operate with high operating leverage?
a doctor's office
an auto manufacturing facility
a mental health clinic
none of the above would have high operating leverage
Question 3: Firms generally decide to call their bonds when interest rates:
rise
drop
remain the same
there is no relationship between interest rates and the call provision
Question 4: The elimination of overlapping functions and the meshing of two firms' strong areas creates the managerial incentive for merger that is called:
pooling of interest
purchase of assets
synergy
None of the above
Question 5: What type of MNC produces a product domestically and ships it to a foreign market?
joint venture
fully owned foreign subsidiary
exporter
importer
Question 6: The most restrictive policy for using inventory as collateral for short-term borrowing is called:
blanket inventory lien
warehousing inventory
trust receipt
factoring
Question 7: Which one of the following is NOT a tool of financial forecasting?
cash budget
capital budget
pro forma balance sheet
pro forma income statement
Question 8: One desire of stockholders regarding dividend policy is:
stable dividends
frequent dividends
low dividends
high dividends
Question 9: The number of days until the firm is past due to a supplier is called the:
discount period
term to credit
payment period
none of the above
Question 10: A business combination where the two firms who are merging develop a new firm is called:
a horizontal merger
a vertical merger
a business consolidation
none of the above
