Managerial Economics - 13

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question
Managerial economics generally refers to the integration of economic theory with business
Correct Answer
Practice
Your Answer
Practice

Multiple Choice Single Answer
Question
Every nation’s resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizen’s wants are
Correct Answer
insufficient
Your Answer
sufficient

Multiple Choice Single Answer
Question
All the buyers and sellers operating under perfect competition have knowledge
Correct Answer
perfect
Your Answer
perfect

True/False
Question
Inflation reduces the purchasing power of money and savings.
Correct Answer
True
Your Answer
False

Multiple Choice Single Answer
Question
The supply curve during market period is perfectly
Correct Answer
inelastic
Your Answer
inelastic

True/False
Question
Micro-economics is primarily concerned with the problem of what, how and for whom to produce
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
scarce
goods and services
Commodities
goods and services
scarce
Human wants
unlimited
unlimited
General Theory of Employment, Interest and Money
J. M. Keynes
J. M. Keynes

True/False
Question
The price policy under monopolistic competition is dependent on the prices charged by other rival firms
Correct Answer
True
Your Answer
False

Multiple Choice Single Answer
Question
All firms producing the same or similar product together make
Correct Answer
an industry
Your Answer
an industry

Multiple Choice Single Answer
Question
Joint Stock Company succession is
Correct Answer
perpetual
Your Answer
perpetual

True/False
Question
Private profit motive is an essential feature of Capitalism
Correct Answer
True
Your Answer
True

True/False
Question
‘Free riders’ is a term associated with the people who would like to have benefit of a good without sharing the cost of its supply
Correct Answer
True
Your Answer
False

Multiple Choice Single Answer
Question
Macro – economics provides an exploration to the functioning of an economy in
Correct Answer
general
Your Answer
general

True/False
Question
Inflation is a great opportunity for merchants to benefit more.
Correct Answer
True
Your Answer
True

True/False
Question
The various phases of business cycles are shown by the line of cycle which moves up and down the steady growth line
Correct Answer
True
Your Answer
True

True/False
Question
In the measurement of profit, the differences in the concept of profit arise out of the differences in cost concepts
Correct Answer
True
Your Answer
False

Multiple Choice Single Answer
Question
In economics demand means desire backed by adequate
Correct Answer
purchasing power
Your Answer
ability to pay

Multiple Choice Single Answer
Question
The law of diminishing returns is applicable to agriculture provided the state of technology is given and
Correct Answer
constant
Your Answer
constant

Multiple Choice Single Answer
Question
Under the monetary measures to control inflation, the R. B. I relies heavily on selective credit controls on bank loans against food grains, sugar, oils, oilseeds, cotton etc so as to discourage
Correct Answer
Speculative hoarding
Your Answer
Speculative hoarding

Multiple Choice Single Answer
Question
Slope of supply curve is
Correct Answer
positive
Your Answer
positive

Multiple Choice Single Answer
Question
Costs which increase because of the expansion of a firm are called costs
Correct Answer
incremental
Your Answer
incremental

True/False
Question
The opportunity cost of a product is the opportunity gained of being able to produce some other product.
Correct Answer
False
Your Answer
False

True/False
Question
The supply curve in case of unitary elastic supply is rectangular hyperbola.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
An Industry
Correct Answer
Is a group of firms , All firms dealing in the same line of business , The ownership and management of each firm is different
Your Answer
Is a group of firms , All firms dealing in the same line of business , The ownership and management of each firm is different

Select The Blank
Question
Under monopoly, there is ________ seller who controls the entire ________ in the market
Correct Answer
only one
Your Answer
only one
Correct Answer
supply
Your Answer
supply

Select The Blank
Question
Under monopsony, there are ________ sellers but ________ buyer
Correct Answer
many
Your Answer
many
Correct Answer
only one
Your Answer
only one

Match The Following
Question
Correct Answer
Your Answer
Marginal utility
Addition to total utility
Addition to total utility
Total utility increases marginal
Posative and declining
Marginal utility is zero
At the saturation point for a commodity x the Mux is
Zero
Demand curve of a commodity
Marginal utilities are
Demand curve of a commodity
Posative and declining
Total utility is
Marginal utility is zero
Zero

Select The Blank
Question
By using cost-benefit analysis we can show the ________ necessary for attaining maximum ________ and optimal policy aiming at this goal
Correct Answer
measures
Your Answer
Gross Domestic Product
Correct Answer
net wealth
Your Answer
gross wealth

Multiple Choice Multiple Answer
Question
Average propensity to consume
Correct Answer
It is defined as the ratio of consumption expenditure to any particular level of income , It is found by dividing consumption expenditure by income , It is expressed as the percentage of income consumed
Your Answer
It is derived by dividing income by consumption expenditure

Multiple Choice Multiple Answer
Question
Inflation means
Correct Answer
It is a phenomenon of rising prices , It is a general and dynamic phenomenon , It includes an excess of demand
Your Answer
It is a phenomenon of rising prices

Select The Blank
Question
Aggregate supply function refers to a ________ of the various minimum amounts of proceeds or ________ , which must be expected to be received by the entrepreneur class from the sale of output result
Correct Answer
schedule
Your Answer
demand
Correct Answer
revenues
Your Answer
revenues

Select The Blank
Question
In the ________ terminology, the ________ demand function refers to the schedule of maximum sales proceeds, which the entrepreneurial community actually does expect to be received from the sale of
Correct Answer
Keynesian
Your Answer
Keynesian
Correct Answer
aggregate
Your Answer
aggregate

Multiple Choice Multiple Answer
Question
The fiscal policy includes
Correct Answer
Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure
Your Answer
Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure

Multiple Choice Multiple Answer
Question
The meaning of monetary policy
Correct Answer
It is programme of the central bank , It controls the total supply of money , The basic objective is to achieve economic stability
Your Answer
It is programme of the central bank , It controls the total supply of money , The basic objective is to achieve economic stability

Multiple Choice Multiple Answer
Question
Causes for rise in prices in India
Correct Answer
Mounting government expenditure , Deficit financing and increase in money supply , Role of black money
Your Answer
Mounting government expenditure , Deficit financing and increase in money supply , Role of black money

Multiple Choice Multiple Answer
Question
Managerial economics deals with
Correct Answer
Integration of economic theory with business practice , Using logic of economics, mathematics & statistics. , The use of economic modes of thought to analyze business solution.
Your Answer
Integration of economic theory with business practice , Using logic of economics, mathematics & statistics.

Multiple Choice Multiple Answer
Question
The sources of economic problems are:
Correct Answer
Man has unlimited wants or ends , The means or resources to satisfy them are limited. , These resources are not specific but have alternative uses.
Your Answer
Man has unlimited wants or ends , The means or resources to satisfy them are limited. , These resources are not specific but have alternative uses.

Multiple Choice Multiple Answer
Question
Different types of business organizations are;
Correct Answer
Private sector. , Public sector. , Joint sector.
Your Answer
Joint sector.

Multiple Choice Multiple Answer
Question
Proprietary firm is
Correct Answer
Owned by a single person. , Easy to form. , An organization of single person.
Your Answer
Owned by a single person.

Multiple Choice Multiple Answer
Question
Methods of measurement of elasticity
Correct Answer
Percentage Method , Point elasticity Method , Total outlay expenditure method
Your Answer
Percentage Method , Point elasticity Method , Total outlay expenditure method

Multiple Choice Multiple Answer
Question
Demand forecasts are necessary for:
Correct Answer
Fulfillment of objective of the plans , Preparation of a budget , Expansion of firms
Your Answer
Preparation of a budget , Expansion of firms

Select The Blank
Question
Economic theory provides the basis for the ________ _ making process, there is some difference between the generalization based on abstraction and actual practices. Besides economic theory, mat
Correct Answer
decision making
Your Answer
optimal
Correct Answer
statistics
Your Answer


Select The Blank
Question
The resources of a society consist not only of the free gifts of nature such as ________ but also of ________ and of all sorts of man made aids to further production.
Correct Answer
land and minerals
Your Answer
land and minerals
Correct Answer
human capacity
Your Answer
human capacity

Select The Blank
Question
Individual or sole ________ , which is also called sole- ________ , or single entrepreneurship is the most common, the simplest and the oldest form of business organisation.
Correct Answer
proprietorship
Your Answer
proprietorship
Correct Answer
trader ship
Your Answer
trader ship

Select The Blank
Question
Nominal cost is the ________ cost of production, it is also called expenses of production. The real cost is the ________ cost of production.
Correct Answer
money
Your Answer
opportunity
Correct Answer
opportunity
Your Answer
gross

Select The Blank
Question
Costs may be classified as : (a) ________ , including material costs, wage cost and interest cost (b) ________ , including costs of advertising and (c) other costs, including insurance ch
Correct Answer
Production costs
Your Answer
Production costs
Correct Answer
Selling costs
Your Answer
Selling costs

Select The Blank
Question
The costs of self owned resources, which are employed by the ________ , are non- expenditure or , ________
Correct Answer
firm
Your Answer
firm
Correct Answer
implicit costs .
Your Answer
implicit costs .

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Posted in: Managerial Economics (Set IV)

Managerial Economics - 12

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
A monopolist in a price maker.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The city of Faridabad has specialized in the manufacture of
Correct Answer
bangles
Your Answer
bangles

Multiple Choice Multiple Answer
Question
Demand is determined by
Correct Answer
Price of the product , Relative prices of other goods , Tastes and habits
Your Answer
Price of the product , Relative prices of other goods , Tastes and habits

Multiple Choice Multiple Answer
Question
Baumol has pointed out three main contributions of economic theory. They are
Correct Answer
Economic theory offers clarity to various concepts used in the business anlayses , Economic theory contributes in building anlyatical model to rocognize managerial problems , Economic theory contributes to ,'a set of analytical methods' which enhance the analytical capabilities of business analyasis
Your Answer
Economic theory offers clarity to various concepts used in the business anlayses , Economic theory contributes in building anlyatical model to rocognize managerial problems , Economic theory contributes to ,'a set of analytical methods' which enhance the analytical capabilities of business analyasis

True/False
Question
In case of indivisible goods, which are not priced, the decisions regarding their demand preferences are taken through price mechanism.
Correct Answer
False
Your Answer
True

True/False
Question
A shift in the demand curve to the left shows increase in demand.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
The act of making goods and services is called
Correct Answer
production
Your Answer
production

Multiple Choice Single Answer
Question
With decline in price of a commodity, total expenditure spent on the commodity is less than before, then elasticity of demand for the commodity is
Correct Answer
< 1
Your Answer
< 1

Match The Following
Question
Correct Answer
Your Answer
N.G.O.S
Voluntary social work
Voluntary social work
Sole proprietorship
Unlimited liability
Unlimited liability
Preference shares
Fixed rate of dividend
Fixed rate of dividend
Public enterprises
State control
State control

True/False
Question
Pure private goods are completely divisible and to them the principle of exclusion applies in full measure.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The act of using goods and services to satisfy wants is called
Correct Answer
consumption
Your Answer
consumption

True/False
Question
External economies are the advantages of large scale production enjoyed exclusively an individual firm alone.
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
Market mechanism is characterized by
Correct Answer
instability
Your Answer
stability

Multiple Choice Multiple Answer
Question
Features of Pure Competition are
Correct Answer
Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms
Your Answer
Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms

Multiple Choice Single Answer
Question
The things that are produced by factors of production are called
Correct Answer
commodities
Your Answer
free goods

True/False
Question
Generally, the larger the income of a consumer, his demand for overall commodities tends to be relatively elastic.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
The production function studies
Correct Answer
Input and out put relation , Factors of production and final production , Technology used in production
Your Answer
Input and out put relation , Factors of production and final production , Demand for production

Select The Blank
Question
The externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.
Correct Answer
Pecuniary
Your Answer
Social

Select The Blank
Question
The index numbers which are compiled to measure the changes in retail prices of various commodities refers to ________
Correct Answer
Retail prices index
Your Answer
Retail prices index

Select The Blank
Question
In the context of formulating an investment project, ________ feasibility means the availability of supervisors for implementing and running the project smoothly and professionally.
Correct Answer
management
Your Answer
management

Select The Blank
Question
The minimum number of directors which private limited should have is ________.
Correct Answer
2
Your Answer
2

Select The Blank
Question
In a market economy ________ is the best judge of personal interest.
Correct Answer
individual
Your Answer
individual

Multiple Choice Single Answer
Question
The concept of just distribution of national product is a
Correct Answer
normative
Your Answer
neutral

True/False
Question
Supply management is related to the volume ofsupply & its distribution system.
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The type economic problem is
Correct Answer
universal
Your Answer
universal

Multiple Choice Single Answer
Question
Under monopoly entry of new firms is
Correct Answer
prohibited
Your Answer
prohibited

Multiple Choice Multiple Answer
Question
Specific organizational goals of Firms are
Correct Answer
maximization of profit , reasonable profit target , sales revenue maximization
Your Answer
maximization of profit , sales revenue maximization , to cover risk and uncertainty

Multiple Choice Multiple Answer
Question
Government intervention is needed in free market mechanism to
Correct Answer
To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , All will get sufficient income to meet their basic needs
Your Answer
To provide employment to all who willing to work at prevailing wage rate , Factors of production are optimally allocated between the various industries , Control the market mechanism by charging license fees, commissions, etc

Multiple Choice Single Answer
Question
The firm is a center, where all the decisions are taken about
Correct Answer
production
Your Answer
production

Multiple Choice Single Answer
Question
Under the imperfect market, the market in which few firms exists is called as
Correct Answer
Oligopoly
Your Answer
Oligopoly

True/False
Question
There are no real exceptions to the law of demand
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Every nation’s resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizen’s wants are
Correct Answer
insufficient
Your Answer
insufficient

True/False
Question
The prosperity phase is characterized by rise in the level of employment.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The characteristics of a sole proprietorship firm is
Correct Answer
Unlimited Capital , Ownership by a single person , Easy to form
Your Answer
Ownership by a single person , Easy to form

Select The Blank
Question
Sole Proprietorship which is also called sole ________
Correct Answer
tradership
Your Answer
tradership

Multiple Choice Single Answer
Question
The method of inventory valuation in which , the cost of production is calculated on the assumption that the material which was last to enter the inventory of the company was used first is
Correct Answer
LIFO
Your Answer
LIFO

Multiple Choice Single Answer
Question
In economics, demand means desire backed by adequate
Correct Answer
purchasing power
Your Answer
purchasing power

Multiple Choice Single Answer
Question
Managerial economics generally refers to the integration of economic theory with business
Correct Answer
Practice
Your Answer
Practice

Multiple Choice Single Answer
Question
A group of firms dealing in the same line of business are called as
Correct Answer
Industry
Your Answer
Industry

Multiple Choice Single Answer
Question
Managerial economics is also understood to refer to
Correct Answer
applied economics
Your Answer
applied economics

Match The Following
Question
Correct Answer
Your Answer
Non-price competition
advertisement.
advertisement.
Prestige price
high price on account of prestige considerations.
high price on account of prestige considerations.
Administered prices
public sector undertaking.
state government.
Pricing in cooperative societies
state government.
public sector undertaking.

Multiple Choice Single Answer
Question
The demand curve (A.R.) of a firm under perfect competition is
Correct Answer
perfectly elastic
Your Answer
inelastic

Multiple Choice Multiple Answer
Question
The advantage of cost-benefit analysis are
Correct Answer
Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs
Your Answer
Maximization of social welfare , Maximization of difference between total benefits & total costs , Applicable only in partial equilibrium framework.

Select The Blank
Question
By using cost-benefit analysis we can show the measures necessary for attaining maximum ________ and optimal policy aiming at this goal.
Correct Answer
net wealth
Your Answer
net domestic product

Multiple Choice Multiple Answer
Question
The causes of inflation are
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand
Your Answer
Increase in public expenditure , Increase in foreign demand , Increase in taxation

Select The Blank
Question
The partnership between private sector & government is called ________
Correct Answer
Joint sector enterprise
Your Answer
Joint sector enterprise

Multiple Choice Multiple Answer
Question
Features of short run period are
Correct Answer
Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed
Your Answer
Supply of goods can be adjusted to the demand to some extent , Supply and demand determine the price , Some factors can be changed

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Posted in: Managerial Economics (Set IV)

Managerial Economics - 11

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



True/False
Question
A supply schedule is a graphical presentation of supply patterns.
Correct Answer
False
Your Answer
True

True/False
Question
The subject matter of macro – economics includes the theory of income and employment at an individual level.
Correct Answer
False
Your Answer
False

Select The Blank
Question
When demand for the product increases in the same proportion in which income increases, Income elasticity of demand will be equal to________
Correct Answer
unity
Your Answer
unity

Multiple Choice Multiple Answer
Question
Features of stage of expansion in business cycle are
Correct Answer
Rise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly
Your Answer
Rise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly

Multiple Choice Multiple Answer
Question
Explicit costs are
Correct Answer
Out of pocket costs , These are firms accounting expenses , Expenditure costs
Your Answer
Out of pocket costs , These are firms accounting expenses , Expenditure costs

Multiple Choice Single Answer
Question
Demand for products like tea, betel, tobacoo, sigaratte is a matter of
Correct Answer
habit
Your Answer
habit

Multiple Choice Single Answer
Question
If the substitutes are relatively cheaper then the demand for the commodity in question will be
Correct Answer
less
Your Answer
less

Multiple Choice Single Answer
Question
An assembly of several machines, linked together either physically or by processes, capable of producing a given quantity of a product per day is
Correct Answer
plant
Your Answer
plant

Multiple Choice Single Answer
Question
The Risk Taking Theory was developed by Hawley, who was an
Correct Answer
American Economist
Your Answer
American Economist

Select The Blank
Question
The cost which enter the accounts book of the firm are referred as ________.
Correct Answer
Accounting cost
Your Answer
Accounting cost

Select The Blank
Question
The persons who own the ________hip concern are called Partners.
Correct Answer
Partners
Your Answer
Partners

Select The Blank
Question
Perfectly elastic demand curve is ________
Correct Answer
horizontal
Your Answer
horizontal

Select The Blank
Question
While discussing the product divisibility of public and private goods, the principle of ________ may be applied in case of only those people who do not agree to pay or who cannot pay the market price
Correct Answer
exclusion
Your Answer
exclusion

Multiple Choice Multiple Answer
Question
Features of the firm are
Correct Answer
It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company
Your Answer
It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stock company

Multiple Choice Multiple Answer
Question
The causes of inflation are
Correct Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand
Your Answer
Increase in public expenditure , Increase in private expenditure , Increase in foreign demand

True/False
Question
Inflation is a great opportunity for merchants to earn more profit.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Human wants
unlimited
unlimited
General Theory of Employment, Interest and Money
J. M. Keynes
J. M. Keynes
Managerial economics
Decision making and forward planning
Decision making and forward planning
Resources
scarce
scarce
Commodities
goods and services
goods and services

Multiple Choice Multiple Answer
Question
The advantage of cost-benefit analysis are
Correct Answer
Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs
Your Answer
Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between total benefits & total costs

Select The Blank
Question
Sole Proprietorship which is also called sole ________
Correct Answer
tradership
Your Answer
tradership

True/False
Question
A plant is an economic unit which takes various decisions related to production and distribution.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Features of an Industry are
Correct Answer
All firms dealing in the same line of business , The ownership and management of each firm is different , Is a group of firms
Your Answer
All firms dealing in the same line of business , The ownership and management of each firm is different , Is a group of firms

Multiple Choice Single Answer
Question
Managerial economics generally refers to the integration of economic theory with business
Correct Answer
Practice
Your Answer
Practice

True/False
Question
During recession, on account of decline in investment by producers, there is decline in income and consumption.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The fiscal policy includes
Correct Answer
Monitoring of public expenditure , Formation of taxation policy , It is an instrument for economic stabilization
Your Answer
Formation of taxation policy , It is an instrument for economic stabilization , Monitoring of public expenditure

Multiple Choice Single Answer
Question
Forecasts made either through experience or through methodigistic are
Correct Answer
statistical
Your Answer
statistical

Multiple Choice Single Answer
Question
Managerial economics is also understood to refer to
Correct Answer
applied economics
Your Answer
applied economics

Select The Blank
Question
The externality which causes an economic gain or an economic loss to other economic units is also referred to as ________ externality.
Correct Answer
Pecuniary
Your Answer
Social

Multiple Choice Single Answer
Question
According to Prof. F.H. Knight, profit is a reward for
Correct Answer
uncertainty bearing
Your Answer
uncertainty bearing

Multiple Choice Single Answer
Question
The principle of full employment equilibrium was stated by
Correct Answer
Say's Law of Market
Your Answer
Law of Demand

Multiple Choice Multiple Answer
Question
Phases of business cycle
Correct Answer
Expansion , Peak , Recession
Your Answer
Expansion , Peak , Recession , Trough

True/False
Question
In case of a Joint Stock Company the liability of the share holders is unlimited.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Goods which are completely divisible and to them the principle of exclusion applies in full measure, are called
Correct Answer
Pure public goods
Your Answer
Private goods

Multiple Choice Multiple Answer
Question
Assumptions underlying the law of Supply are
Correct Answer
The cost of production is unchanged , No change in technique of production , Government policies are unchanged
Your Answer
The cost of production is unchanged , No change in technique of production , Government policies are unchanged

Multiple Choice Multiple Answer
Question
The payments made out of the Gross Profit are
Correct Answer
Remuneration to factors of production , Depreciation , Maintenance Charges
Your Answer
Remuneration to factors of production , Depreciation , Maintenance Charges

Select The Blank
Question
The indivisible goods to which the principle exclusion does not apply are called ________ goods.
Correct Answer
pure public
Your Answer
pure public

True/False
Question
Micro-economics is primarily concerned with the problem of what, how and for whom to produce?
Correct Answer
False
Your Answer
True

Multiple Choice Single Answer
Question
Gross profit is the excess of total revenue of a firm over total
Correct Answer
expenditure
Your Answer
expenditure

True/False
Question
During period of depression various factors of production lie unutilized.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Co-operative organizations is
Correct Answer
voluntary organization , managed by democratic principle , organization, which performs its business within the members
Your Answer
voluntary organization , managed by democratic principle , organization, which performs its business within the members , non profit motive organization

Multiple Choice Single Answer
Question
Macro economics is the study of the
Correct Answer
aggregate behavior of economy
Your Answer
aggregate behavior of economy

True/False
Question
To solve the unemployment problem, the level of effective demand must decrease.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
The public sector is owned & controlled by
Correct Answer
state enterprises
Your Answer
state enterprises

Select The Blank
Question
Demand for safety pins is ________
Correct Answer
inelastic
Your Answer
relatively inelastic

Multiple Choice Single Answer
Question
Under perfect competition, generally demand and supply act and react upon each other and determine the price
Correct Answer
equilibrium
Your Answer
equilibrium

True/False
Question
During the period of recession there is increase in incomes of wage and interest earners.
Correct Answer
False
Your Answer
False

Select The Blank
Question
In a market economy ________ is the best judge of personal interest.
Correct Answer
individual
Your Answer
firm

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Posted in: Managerial Economics (Set IV)

Industrial Safety and Security - 1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS



Select The Blank
Question
In a large machinery and process plant, ________ to maintainance personnel who may remain out of sight, if the plant is suddenly switched on
Correct Answer
protection may not be available
Your Answer
protection may not be available

True/False
Question
Security should ensure clearance from accounts departmet before the vehicle carrying scrap is allowed to pass through the exit gate
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
Private sector investigators appointed in the organisation may gather information concerning the specific job, such as
Correct Answer
Job applicant's background
Your Answer
Job applicant's background

Select The Blank
Question
While finalising the programme, and________ it will be desirable to have combination of different methods
Correct Answer
method of instructions
Your Answer
method of instructions

Multiple Choice Single Answer
Question
The widely recognised book " Industrial Security Techniques" is authored by
Correct Answer
Ronald Woodruff
Your Answer
Ronald Woodruff

Select The Blank
Question
Even a small ________ can affect manipulative effectiveness and physiological efficiency
Correct Answer
changes in work surface height
Your Answer
changes in work surface height

Multiple Choice Multiple Answer
Question
Duties of the safety officer includes,
Correct Answer
to advise on all safety aspects in all job studies , to investigate selected accidents , to promote setting up of safety commitees and act as advisor to such committees
Your Answer
to advise on all safety aspects in all job studies , to investigate selected accidents , to promote setting up of safety commitees and act as advisor to such committees

Multiple Choice Multiple Answer
Question
A neat report reflects on the security officer. The report should
Correct Answer
have a good overall presentation , have a neat penmasnship as an important aspect , avoid wrinkled paper,food or any oil stains in the report
Your Answer
have a good overall presentation , have a neat penmasnship as an important aspect , avoid wrinkled paper,food or any oil stains in the report

Multiple Choice Single Answer
Question
Not all questions asked during the enquiry will produce complete and accurate answers from the witnesses because
Correct Answer
They may be reluctant to speak
Your Answer
They may be reluctant to speak

Multiple Choice Multiple Answer
Question
The various categories in which the documents are classifed are,
Correct Answer
Top secret , Confidential , Restricted
Your Answer
Top secret , Confidential , Restricted

Multiple Choice Single Answer
Question
Narrative written in third person promotes
Correct Answer
more impersonal and business like report
Your Answer
more impersonal and business like report

Multiple Choice Multiple Answer
Question
In order to improve the clarity of the report, one should ensure that
Correct Answer
It is understandable , It is in simple language
Your Answer
It is understandable , It is in simple language

Select The Blank
Question
The most correct evaluation of imparted safety training would be ________.
Correct Answer
reduction in accident cases
Your Answer
reduction in accident cases

Select The Blank
Question
Excellent ________ is vital for successful resolution of industrial relations problem
Correct Answer
collection of information and its analysis
Your Answer
collection of information and its analysis

Multiple Choice Multiple Answer
Question
It is the primary duty of security officers to safeguard documents -----------------------------
Correct Answer
to prevent espionage
Your Answer
to prevent espionage , to prevent leakage of information to the press

Select The Blank
Question
The cost of injuries and property damage curiously enough ________ seem to stir popular interest to effect safety
Correct Answer
does not
Your Answer
does not

Select The Blank
Question
Information could be collected from those people who have ________.
Correct Answer
tendency to brag about every thing
Your Answer
tendency to brag about every thing

Multiple Choice Multiple Answer
Question
Some of the major requirement of safe devices are,
Correct Answer
remote control operation by devices from a determined safe distance , presence of sensing device, like photoelectric control measures , safety trip control- the device should immediately trip the switch, if the danger is detected
Your Answer
it should be accepted by the user , safety trip control- the device should immediately trip the switch, if the danger is detected

Select The Blank
Question
The police and fire brigade help can be sought to provide ________ for transportation of casualties
Correct Answer
additional fleet of vehicles
Your Answer
additional fleet of vehicles

Multiple Choice Single Answer
Question
The overall purpose of security officers report is to
Correct Answer
Protect people and assets of the company
Your Answer
Protect people and assets of the company

Select The Blank
Question
Every vacancy arising due to any reason in the post of the Safety offcers should be filled within ________
Correct Answer
three months of occurance of vacancy
Your Answer
three months of occurance of vacancy

Match The Following
Question
Correct Answer
Your Answer
The duties of the safety officer
shall be to advise and assist the factory management in fulfilling its obligations.
shall be to advise and assist the factory management in fulfilling its obligations.
The selection of the security officer be made
from amongst the candidates applying for the post
notified in the official gazette only
Effective controls should be achieved by means of
a written system however even this system relies on questionable elements
a written system however even this system relies on questionable elements
Every vacancy arising due to any reason in the post of the safety officer
shall be forthwith notified by the occupier to the Chief Inspector of Factories
shall be forthwith notified by the occupier to the Chief Inspector of Factories

Select The Blank
Question
In case of gas fire, if there is ________ then evacuate immediately
Correct Answer
no way to close the valve of the cylinder
Your Answer
no way to close the valve of the cylinder

Multiple Choice Single Answer
Question
As compared to sprinkler system of suppression the standpipe and hose system,
Correct Answer
allows people to fight the fire manually and direct water onto the blaze
Your Answer
allows people to fight the fire manually and direct water onto the blaze

True/False
Question
While assigning the post to security personnels, principle of being regularly irregular must be used so that, it becomes difficult to form a nexus with criminals
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
While the security officers may fight the fire , they should not forget,
Correct Answer
to help out necessity to work in conjunction with fire fighting staff , that fire could have been set to divert attention so a crime can be committed , fire could have been set to cover a crime
Your Answer
to help out necessity to work in conjunction with fire fighting staff , that fire could have been set to divert attention so a crime can be committed , fire could have been set to cover a crime

Multiple Choice Multiple Answer
Question
Various grades in the security department which are generally found are
Correct Answer
Chief Security officer , Senior Security officer , Security Managers
Your Answer
Chief Security officer

True/False
Question
Even if the time is limited abbreviations and symbols are not used while preparing Notes
Correct Answer
False
Your Answer
False

True/False
Question
Losses are accounted out of turnover, and not out of profits
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Past experience indicate, that, the bomb may be disguised as / in
Correct Answer
flower pots , lunch box , brief case
Your Answer
flower pots , lunch box , brief case

Multiple Choice Multiple Answer
Question
To prove a worker suspected of committing theft you need to
Correct Answer
catch him/her while in the act of committing theft , need to follow him while planning the theft , need to be found in the actual possesion of the goods
Your Answer
catch him/her while in the act of committing theft , need to be found in the actual possesion of the goods

Multiple Choice Single Answer
Question
Security officers often become the first representative of the company, because
Correct Answer
customers are typically greeted by the security officers
Your Answer
customers are typically greeted by the security officers

Multiple Choice Single Answer
Question
When the crime is detected the supplier or contractor should be
Correct Answer
called and made to admit the crime
Your Answer
called and made to admit the crime

True/False
Question
Past experience shows that, the crimes committed in industries are repeated since the punishment is not always awarded in the reasonable time frame
Correct Answer
True
Your Answer
True

True/False
Question
The onlookers may press for sympathy for the injuries caused
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The gate entry register has the information like
Correct Answer
Vehicle number
Your Answer
Vehicle number

Match The Following
Question
Correct Answer
Your Answer
The noticeable effect of toxic particulate contminants
could result in irritation to the skin
could result in irritation to the skin
The inert gases produce
undesirable effects primarily by displacement of oxygen
undesirable effects primarily by displacement of oxygen
The mangement should be consulted
on all new introductions of personal protective equipments
on all new introductions of personal protective equipments
If there is shortage of oxygen in the atmosphere, the respiratory protective equipment
should either supply normal air or oxygen to the wearer
should either supply normal air or oxygen to the wearer

Multiple Choice Single Answer
Question
In order to protect the information while handling the same, one of the method could be,
Correct Answer
classify the documents properly so that proper handling can be done
Your Answer
classify the documents properly so that proper handling can be done

Select The Blank
Question
Most people ________ how dangerous and damaging a fire until it occurs
Correct Answer
do not realise
Your Answer
do not realise

True/False
Question
Participation on decisions aids in acceptance of those decisions more effectively
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
The humanitarian reason for accident prevention is based on, notion that,
Correct Answer
it is the duty of every man to ensure the general well being of his fellow men
Your Answer
it is the duty of every man to ensure the general well being of his fellow men

True/False
Question
Rigid rules can be laid down as to which case should be reported to the police
Correct Answer
False
Your Answer
False

True/False
Question
In the present context information is not the most important thing to be protected
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
To control electrical fires, some of the important actions to be taken immediately,
Correct Answer
cut off electrical supply , remove flamable material away , do not use water on live electrical wires
Your Answer
cut off electrical supply , call the fire brigade immediately , remove flamable material away , do not use water on live electrical wires

Multiple Choice Multiple Answer
Question
Some of the exmples of sources of heat are,
Correct Answer
open flames , sparks , arcs
Your Answer
open flames , match box , sparks , arcs

True/False
Question
The bottom line of any business is profit
Correct Answer
True
Your Answer
True

Multiple Choice Single Answer
Question
For handling press people,
Correct Answer
utmost care should be taken
Your Answer
utmost care should be taken

Read more »

Posted in: Industrial Safety and Security

Financial Management - 20

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question The effect of Bonus paid in the form of fully paid shares on funds ( cash concept ) is
Correct Answer No change in cash
Your Answer No change in cash

Multiple Choice Multiple Answer
Question The function of Bill of Materials are
Correct Answer It may serve as a base for the Production department for placing the material requisition slips , It gives an indication about the orders to be executed to all the persons concerned , A bill of material prepared and valued in advance may serve as base for quoting the price for the job or production order
Your Answer It gives an indication about the orders to be executed to all the persons concerned , A bill of material prepared and valued in advance may serve as base for quoting the price for the job or production order , It may serve as a base for the Production department for placing the material requisition slips

Multiple Choice Multiple Answer
Question Disadvantages of Net Present value
Correct Answer It presupposes that the discounting rate is known , It may give dissatisfactory results if the alternative projects involve varying investment outlay , It presupposes that cash inflows can be reinvested immediately to yield the return equivalent to the discounting rate which may not be possible
Your Answer It presupposes that the discounting rate is known , It may give dissatisfactory results if the alternative projects involve varying investment outlay , It presupposes that cash inflows can be reinvested immediately to yield the return equivalent to the discounting rate which may not be possible

Multiple Choice Single Answer
Question From the following data, work out the Economic order quantity : Annual Demand : 5000 units, Ordering cost Rs. 60 per order, Price per unit Rs. 100, Inventory carrying cost is 15% on average inventory
Correct Answer 200 units
Your Answer 200 units

True/False
Question An ideal investor makes an comparison between the current market price and future Earning per share as the market value of shares depends upon the future Earnings per share
Correct Answer True
Your Answer True

True/False
Question One of the most common methods to monitor the receivables on macro basis is to calculate age-wise analysis of receivables
Correct Answer False
Your Answer False

Match The Following
Question Correct Answer Your Answer

Financial leverage indicates firm's ability to use fixed financial charges to magnify the effects of changes in earning before interest and tax on the firm's earning per share indicates firm's ability to use fixed financial charges to magnify the effects of changes in earning before interest and tax on the firm's earning per share

Earnings per share ratio to measure the profits available to the equity shareholders on a per share basis ratio to measure the profits available to the equity shareholders on a per share basis

Price earning ratio indicates the price currently being paid in the stock market for every one rupee of Earning per share indicates the price currently being paid in the stock market for every one rupee of Earning per share

Operating leverage measures the effect of change in sales quantity on earnings before interest and taxes measures the effect of change in sales quantity on earnings before interest and taxes


Select The Blank
Question Inflow of funds may not necessarily result in ________
Correct Answer Inflow of cash
Your Answer Inflow of cash

True/False
Question If the customer fails to pay the amount due from him the legal action should be initiated against the customer after the limitation period is over
Correct Answer False
Your Answer True

Select The Blank
Question Debt Equity ratio is alternatively called ________ ratios
Correct Answer Leverage
Your Answer Leverage

True/False
Question In case of lease transactions, neither the assets side nor the liabilities side of the balance sheet of lessee gets affected
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The company which pays a fixed amount of dividend irrespective of the fluctuations in income is categorised under
Correct Answer Stable Dividend policy
Your Answer Stable Dividend policy

True/False
Question Wages/salaries is considered under Operating cashinflow
Correct Answer False
Your Answer False

Select The Blank
Question Investment of the venture capitalist does not exceed ________ so that the effective control of the project remains with the entrepreneur
Correct Answer 0.49
Your Answer 0.49

True/False
Question Wealth maximization goal is only an extension of Profit maximization goal of the organisation
Correct Answer True
Your Answer True

True/False
Question It is only after crossing the break even point that the profit generating capacity of the company starts
Correct Answer True
Your Answer True

Select The Blank
Question Liquidity ratios indicate the ________ position of the organisation
Correct Answer Short term
Your Answer Short term

Multiple Choice Single Answer
Question Current assets are also referred to as
Correct Answer Working Capital
Your Answer Working Capital

True/False
Question Debt equity ratio indicates the stake of share holders and creditors in the organisation
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The Investment decisions are mainly concerned with
Correct Answer Application of funds
Your Answer Application of funds

Multiple Choice Single Answer
Question Which of the following assets get generated during course of operations or get utilized within one year
Correct Answer Current assets
Your Answer Current assets

Multiple Choice Single Answer
Question Net Working Capital means
Correct Answer Current assets less Current liabilities
Your Answer Current assets less Current liabilities

Select The Blank
Question The mathematical expression of ________ is ( Minimum level + Maximum level ) / 2
Correct Answer Average level
Your Answer Average level

Match The Following
Question Correct Answer Your Answer

Credit rating symbol for Commercial Paper of Default by Investment Information and Credit rating agency A5 A5

Credit rating symbol for Debentures of Inadequate safety by CRISIL BB BB

Credit rating symbol for Fixed Deposits of High risk by CRISIL FC FC

Credit rating symbol for Fixed Deposits of Adequate safety by Investment Information and Credit rating agency MA MA


Multiple Choice Single Answer
Question The Capital Structure decision mainly refers to the decision of
Correct Answer Financing
Your Answer Financing

Multiple Choice Multiple Answer
Question If Profit maximization is accepted as the only goal of finance function, it is criticised on the following grounds
Correct Answer Ignores risk factor , Does not consider social obligation , Ignores quality aspect of benefits associated with a financial course of action
Your Answer Does take into consideration time value of money , Ignores risk factor , Does not consider social obligation

Multiple Choice Multiple Answer
Question Advantages of Centralised disbursements
Correct Answer It increases the transit time , Minimum cash balance can be maintained only in case of central bank account instead of four different branches , To maintain the bank accounts at different branches may prove to be administratively difficult
Your Answer Minimum cash balance can be maintained only in case of central bank account instead of four different branches , To maintain the bank accounts at different branches may prove to be administratively difficult , Consideration of the convinience of the customers

Select The Blank
Question Preparation of Financial plan at the time of company promotion is ________ duty of the finance executive
Correct Answer Non-recurring
Your Answer Sole

Multiple Choice Multiple Answer
Question The techniques of Analysis and Interpretation of financial statements are
Correct Answer Ratio Analysis , Cash flow Analysis
Your Answer Ratio Analysis , Cash flow Analysis

Multiple Choice Multiple Answer
Question Undue increase in Gross Profit ratio may indicate
Correct Answer Over-valuation of closing stock , Consideration of non-sales transactions as sales transaction
Your Answer Over-valuation of closing stock , Consideration of non-sales transactions as sales transaction

Select The Blank
Question The following data are extracted from the published accounts of a company : Sales Rs. 38,00,000/-, Net Profit after tax Rs. 2,50,000/-, Equity capital Rs. 10,00,000/-,General Reserve Rs. 6,50,000/-, Rs. Long term debt Rs. 7,00,000/-, Creditors Rs. 6,90,000/-, Bank credit/short term loan Rs. 2,30,000/-, Fixed Assets Rs. 17,50,000/-, Inventories Rs. 7,25,000/-, Other Current assets Rs. 5,25,000/-. The Fixed assets turnover ratio is ________ .
Correct Answer 2.17
Your Answer 2.17

Select The Blank
Question Carriage Inward is normally debited to ________
Correct Answer Manufacturing Account
Your Answer Profit and Loss Account

Multiple Choice Single Answer
Question Purchases of raw material appear in the cash budget under the head
Correct Answer Operating cash outflow
Your Answer Operating cash outflow

Multiple Choice Multiple Answer
Question The characteristics of Debentures are
Correct Answer Funds raised by the company by way of debentures are required to be repaid during the lifetime of the company at the time stipulated by the company , The interest on debentures is payable even if the company does not earn the profits , In financial terms, debentures prove to be a cheap source of funds from the company's point of view
Your Answer Funds raised by the company by way of debentures are required to be repaid during the lifetime of the company at the time stipulated by the company , The interest on debentures is payable even if the company does not earn the profits , In financial terms, debentures prove to be a cheap source of funds from the company's point of view

Multiple Choice Single Answer
Question The formula for Fixed assets turnover ratio is
Correct Answer Net Sales / Fixed Assets
Your Answer Net Sales / Fixed Assets

Multiple Choice Multiple Answer
Question External sources of cash are as follows :
Correct Answer Issue of new shares , long term loans , short term borrowings
Your Answer long term loans , short term borrowings

Multiple Choice Single Answer
Question Revenue from sale of products ordinarily is reported as part of the earning in the period
Correct Answer the sale is made
Your Answer the sale is made

Multiple Choice Single Answer
Question The main function of finance under the traditional approach comprises of
Correct Answer Procurement of funds
Your Answer Procurement of funds

True/False
Question As per the SEBI guidelines revaluation reserve can be used for issue of bonus share
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Top management who can accept or reject capital expenditure proposals may be in the form of
Correct Answer Board of Directors , Executive committee , Management committee
Your Answer Board of Directors , Executive committee

Multiple Choice Single Answer
Question The traditional approach to financial management refers only to the procurement of funds by
Correct Answer Corporate entity
Your Answer Corporate entity

Multiple Choice Single Answer
Question Net cash inflow is arrived at
Correct Answer Revenue after tax add depreciation
Your Answer Sales revenue less cost

Select The Blank
Question ________ is an example of Intangible asset
Correct Answer Goodwill
Your Answer Goodwill

Multiple Choice Single Answer
Question The capability of the organisation to repay the dues arising as a result of long term borrowing is caculated by
Correct Answer Debt Service coverage ratio
Your Answer Debt Service coverage ratio

Multiple Choice Single Answer
Question Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by
Correct Answer Bonneville and Dewey
Your Answer Bonneville and Dewey

Select The Blank
Question ________ of the company should authorise the company to buy back its own shares
Correct Answer Articles of Association
Your Answer Articles of Association

Multiple Choice Multiple Answer
Question External sources of funds are
Correct Answer Funds from long term loans , Sale of fixed assets
Your Answer Funds from long term loans , Sale of fixed assets

Read more »

Posted in: Financial Management (Set VI)

Financial Management - 19

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question The assumptions of capital structure theories is that Corporate Income Tax does not exist
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The technique which tries to find out the present value of Re 1 if received or spent after n years, provided that the interest rate of I can be earned on investment is termed as
Correct Answer Discounting
Your Answer Discounting

Multiple Choice Multiple Answer
Question Limitations of Average collection period
Correct Answer Average Collection period assumes that the credit sales are evenly spread throughout the year. In practical circumstances, credit sales are not evenly spread throughout the year , The amount of credit sales made by company or the normal credit period offered by the company are not available in the published financial statements
Your Answer Average Collection period assumes that the credit sales are evenly spread throughout the year. In practical circumstances, credit sales are not evenly spread throughout the year , The amount of credit sales made by company or the normal credit period offered by the company are not available in the published financial statements

True/False
Question Debtors turnover ratio is normally supported by the calculations of average collection period
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The main function of finance under the traditional approach comprises of
Correct Answer Procurement of funds
Your Answer Procurement of funds

Multiple Choice Single Answer
Question An increase in current asset
Correct Answer increases working capital
Your Answer increases working capital

True/False
Question Financial statements do not provide information about sources of raising funds as well as the applications of these funds
Correct Answer True
Your Answer False

Multiple Choice Multiple Answer
Question The disadvantages of a Partnership firm are
Correct Answer Unlimited liability , Capacity to raise funds to meet complex business operations is limited
Your Answer Unlimited liability , Capacity to raise funds to meet complex business operations is limited

Multiple Choice Single Answer
Question The traditional approach to financial management refers only to the procurement of funds by
Correct Answer Corporate entity
Your Answer Corporate entity

Multiple Choice Multiple Answer
Question Factoring can be classified as
Correct Answer Without Recourses factoring , With Recourse factoring
Your Answer Without Recourses factoring , With Recourse factoring

Multiple Choice Multiple Answer
Question Advantages of Debentures from Investor's point of view
Correct Answer They earn a stable rate of return , They are protected by the various provisions of the debenture Trust Deed , They generally have a fixed maturity period
Your Answer They earn a stable rate of return , They are protected by the various provisions of the debenture Trust Deed , They generally have a fixed maturity period

Multiple Choice Single Answer
Question Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by
Correct Answer Bonneville and Dewey
Your Answer Bonneville and Dewey

Multiple Choice Single Answer
Question Interest and Dividend are categorised under
Correct Answer Non-operating expenses
Your Answer Non-operating expenses

True/False
Question Retained earnings involves cost in terms of dividend foregone by or withheld from the equity shareholders
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question A project requires an outlay of Rs. 4,00,000 and earns, an annual cash inflow of Rs. 1,00,000 for 8 years. Calculate pay back period
Correct Answer 4 years
Your Answer 4 years

Multiple Choice Single Answer
Question The rate of return which computes the average annual yield on the net investment in the project is known as
Correct Answer Accounting rate of return
Your Answer Accounting rate of return

Multiple Choice Single Answer
Question The Pay Bank period is calculated as
Correct Answer Cash outlay / Annual cash inflow
Your Answer Cash outlay / Annual cash inflow

Multiple Choice Multiple Answer
Question Disadvantages of Internal rate of return is
Correct Answer It is difficult to use and understand , It presupposes that the cash inflows can be reinvested immediately to yield the return equivalent to Internal rate of return which is not very realistic
Your Answer It is difficult to use and understand , It presupposes that the cash inflows can be reinvested immediately to yield the return equivalent to Internal rate of return which is not very realistic

True/False
Question The lessor is the nominal owner of the asset as the possession and economic use of the asset rests with the lessee
Correct Answer True
Your Answer True

Select The Blank
Question The projects having maximum positive Net present value will be ranked ________
Correct Answer highest
Your Answer highest

Select The Blank
Question The current ratio of ________ is considered to be standard
Correct Answer 2 : 1
Your Answer 2 : 1

Multiple Choice Single Answer
Question The cost which varies in direct proportion to the sales revenue is termed as
Correct Answer Variable cost
Your Answer Variable cost

Multiple Choice Single Answer
Question Current assets are also referred to as
Correct Answer Working Capital
Your Answer Working Capital

Multiple Choice Multiple Answer
Question Situation of capital rationing may involve problems in the form of
Correct Answer Mutually dependent project , Multi period projects , Project Indivisibility
Your Answer Project Indivisibility , Mutually dependent project , Multi period projects

True/False
Question Financial leverage is calculated as ( Sales - Variable cost ) / ( Earnings before Interest and tax - Interest )
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question The Irrelevance approach is based on the assumption of
Correct Answer Capital markets are perfect, Investors are rational, transactions are instaneous and costless. Securities are divisible and no investor can influence the market price
Your Answer Retained earnings are the only source of finance available to the company

Multiple Choice Multiple Answer
Question The normal process which may be followed under the capital rationing situations may be
Correct Answer Rank the projects according to some measure of profitability , Select projects in the descending order of profitability till the available funds are exhausted
Your Answer Rank the projects according to some measure of profitability , Select projects in the descending order of profitability till the available funds are exhausted

Match The Following
Question Correct Answer Your Answer

Advantage of Net present value considers cash inflows from the project throughout its life considers cash inflows from the project throughout its life

Disadvantage of Accounting rate of return uses profits after depreciation and taxes and not the cash inflows for evaluating the projects uses profits after depreciation and taxes and not the cash inflows for evaluating the projects

Disadvantage of Pay back period ignores time value of money ignores time value of money

Advantage of Discounted Pay back period considers time value of money considers time value of money


Match The Following
Question Correct Answer Your Answer

Mortgage Mode of security pertains to immovable properties like land and building Mode of security pertains to immovable properties like land and building

Hypothecation Neither the property not the possession of the goods is transferred to the bank Neither the property not the possession of the goods is transferred to the bank

Pledge Possession of the goods is with the bank Possession of the goods is with the bank

Lien Bank has a right to retain the goods belonging to the company until the debt due to the bank is paid Bank has a right to retain the goods belonging to the company until the debt due to the bank is paid


Multiple Choice Multiple Answer
Question Utility of cash flow analysis
Correct Answer Helps in efficient cash management , helps in internal financial management , Discloses the movements of cash
Your Answer Helps in efficient cash management , helps in internal financial management , Discloses the movements of cash

True/False
Question Inadequate provision for depreciation may be the cause of overcapitalisation
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Price Earnings ratio is calculated as
Correct Answer Market Price per share / Earnings per share
Your Answer Market Price per share / Earnings per share

Select The Blank
Question If the size of the issue is more than Rs. 100 crores, the issue is required to be rated by at least ________ credit rating agencies
Correct Answer two
Your Answer two

Multiple Choice Multiple Answer
Question Advantages of ABC Analysis are
Correct Answer A close and strict control is facilitated on the most important items , Helps in maintaining a high inventory turnover ratio , Optimum utilisation of the available funds can be assured
Your Answer A close and strict control is facilitated on the most important items , Helps in maintaining a high inventory turnover ratio , Optimum utilisation of the available funds can be assured

Select The Blank
Question Modigliani - Miller approach closely resembles ________ approach
Correct Answer Net operating income
Your Answer Net operating income

Select The Blank
Question The amount of shares bought back by the company should not be more than ________ of total paid-up capital of the company and its free reserves
Correct Answer 0.25
Your Answer 0.25

Multiple Choice Single Answer
Question The most easiest form of organisation to form and operate is
Correct Answer Proprietary concern
Your Answer Proprietary concern

Multiple Choice Single Answer
Question The period that within which the cost of the project will be completely recovered is known as
Correct Answer Pay Back period
Your Answer Pay Back period

True/False
Question Credit rating is obligatory only in case of the debt instruments
Correct Answer True
Your Answer True

Select The Blank
Question In the case of Overcapitalisation ________ is the worst affected class
Correct Answer Shareholders
Your Answer Shareholders

Select The Blank
Question From the following data, the Earning per share is ________ : Net Profit before tax Rs. 2,00,000/-, Taxation at 50% of Net Profit, 10% Preference Share Capital (Rs. 10 each) Rs. 1,00,000/-, Equity Share Capital (Rs. 10 each) Rs. 1,00,000/-
Correct Answer 9
Your Answer 9

Multiple Choice Multiple Answer
Question Overall profitability ratio includes
Correct Answer Return on Asset , Return on Shareholders Funds
Your Answer Return on Asset , Return on Shareholders Funds

True/False
Question Earnings per share is of great significance to an operator on the stock exchange buying and selling the shares
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question The recommendations of the Chhore committee included
Correct Answer increasing role of short term loans and bill finance and curbing the role of cash credit limits , the bank should appraise and fix separate limits for normal non-peak levels and also peak levels
Your Answer increasing role of short term loans and bill finance and curbing the role of cash credit limits , the bank should appraise and fix separate limits for normal non-peak levels and also peak levels

Multiple Choice Single Answer
Question Inventory turnover ratio is a measure to discover
Correct Answer The possible trouble in the form of overstocking or overvaluation
Your Answer The possible trouble in the form of overstocking or overvaluation

Select The Blank
Question The comparison of the ratios of one organisation with that of the other organisation is termed as ________ comparison
Correct Answer Inter-firm
Your Answer Inter-firm

Select The Blank
Question Net Present value considers ________ from the project throughout its life
Correct Answer cash inflow
Your Answer cash inflow

Read more »

Posted in: Financial Management (Set VI)

Financial Management - 18

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question If the policy of the lending banks or financial institutions is too harsh or rigid, it will be advisable to
Correct Answer not to go for borrowed funds
Your Answer not to go for borrowed funds

True/False
Question Retained earnings involves cost in terms of dividend foregone by or withheld from the equity shareholders
Correct Answer True
Your Answer True

True/False
Question In case of cash credit, the company need not have a formal current account
Correct Answer True
Your Answer True

True/False
Question Reserve Bank of India appointed the Marathe Committee with the intention to recognize the contribution made by the SSI Sector to the economy
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question The book-keeping and accounting activities in relation to the receivables management undertaken by the factor includes
Correct Answer Maintenance of debtors ledger , Various periodical reports about outstanding from the customers , Age-wise analysis of the outstanding
Your Answer Maintenance of debtors ledger , Various periodical reports about outstanding from the customers

True/False
Question Economic Order Quantity model is a very useful model of determining the order quantity
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The internal factors affecting the dividend policy are
Correct Answer Growth rate of the company , Composition of the shareholding
Your Answer Growth rate of the company , Composition of the shareholding

Multiple Choice Multiple Answer
Question The causes of undercapitalisation are
Correct Answer Company following too conservative policy for paying the dividends , Future earnings may be underestimated
Your Answer Company following too conservative policy for paying the dividends , Future earnings may be underestimated

Multiple Choice Single Answer
Question Financing consists of the raising, providing, managing of all the money, capital or funds of any kind to be used in connection with the business' is defined by
Correct Answer Bonneville and Dewey
Your Answer Bonneville and Dewey

Multiple Choice Multiple Answer
Question The recurring duties of Finance Executive includes
Correct Answer Working Capital Management , Fixed Assets management , Control of funds
Your Answer Working Capital Management , Fixed Assets management , Control of funds

Multiple Choice Single Answer
Question The inputs purchased and stored to be converted into finished products, this constitutes investment of inventory in the form of
Correct Answer Raw Material
Your Answer Raw Material

True/False
Question A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The main function of finance under the traditional approach comprises of
Correct Answer Procurement of funds
Your Answer Procurement of funds

Multiple Choice Single Answer
Question Irregular Dividend Policy refers to
Correct Answer Dividend per share varying according to the level of earnings
Your Answer Dividend per share varying according to the level of earnings

Multiple Choice Single Answer
Question Mr. A is given the opportunity to receive Rs. 10,000 after two years, when he can earn interest of 10% p.a. on his investment, what should be the amount which he should invest today so that he may be able to receive Rs. 10,000 after two years
Correct Answer Rs. 8,264
Your Answer Rs. 8,264

Multiple Choice Multiple Answer
Question Gross Profit is ascertained by the difference between sales and normally the following expenses
Correct Answer Cost of Purchases , Expenses related to Purchases , Stock Adjustments
Your Answer Cost of Purchases , Expenses related to Purchases , Stock Adjustments

Multiple Choice Single Answer
Question The Pay Bank period is calculated as
Correct Answer Cash outlay / Annual cash inflow
Your Answer Cash outlay / Annual cash inflow

True/False
Question In Regular Stock Dividend policy, the company may pay dividend in the form of bonus shares instead of cash
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The techniques of Analysis and Interpretation of financial statements are
Correct Answer Ratio Analysis , Cash flow Analysis
Your Answer Ratio Analysis , Cash flow Analysis

Multiple Choice Single Answer
Question Feature of term loan is
Correct Answer They are required to be repaid during the lifetime of the company at the predecided intervals say monthly, quarterly, yearly etc.
Your Answer They are required to be repaid during the lifetime of the company at the predecided intervals say monthly, quarterly, yearly etc.

Select The Blank
Question The mathematical expression of ________ is Normal Usage * Lead time for emergency purchases
Correct Answer Danger level
Your Answer Danger level

Multiple Choice Single Answer
Question Unclaimed Dividends is shown in the balance sheet under the head
Correct Answer Current liabilities and Provisions
Your Answer Current liabilities and Provisions

Multiple Choice Single Answer
Question The Investment decisions are mainly concerned with
Correct Answer Application of funds
Your Answer Application of funds

Select The Blank
Question The most crucial financial decisions of the organisation are taken by ________
Correct Answer Board of Directors
Your Answer Board of Directors

Multiple Choice Single Answer
Question A project requires an outlay of Rs. 4,00,000 and earns, an annual cash inflow of Rs. 1,00,000 for 8 years. Calculate pay back period
Correct Answer 4 years
Your Answer 4 years

Multiple Choice Single Answer
Question Current assets are also referred to as
Correct Answer Working Capital
Your Answer Working Capital

Multiple Choice Single Answer
Question The Current assets and current liabilities of a company were Rs. 10 lakhs and Rs. 5 Lakhs respecively. What will be the current ratio if the company purchases land for Rs. 4 lakhs on Cash on Delivery basis
Correct Answer 1.2 : 1.00
Your Answer 1.2 : 1.00

Multiple Choice Multiple Answer
Question The recommendations of the Tandon committee included
Correct Answer the norms for inventory and accounts receivables for as many as 15 industries excluding heavy engineering industry , that the amount of bank credit should not be decided by the capacity of the borrower to offer security to the banks but it should be decided in such a way to supplement the borrower's resources in carrying a reasonable level of current assets in relation to his production requirement
Your Answer the norms for inventory and accounts receivables for as many as 15 industries excluding heavy engineering industry , that the amount of bank credit should not be decided by the capacity of the borrower to offer security to the banks but it should be decided in such a way to supplement the borrower's resources in carrying a reasonable level of current assets in relation to his production requirement

Multiple Choice Multiple Answer
Question The classification of ratios under miscellaneous group includes
Correct Answer Earnings per share , Dividend Payment ratio
Your Answer Earnings per share , Dividend Payment ratio

True/False
Question The lessor is the nominal owner of the asset as the possession and economic use of the asset rests with the lessee
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Live Stock is an example of
Correct Answer Fixed Asset
Your Answer Fixed Asset

Multiple Choice Multiple Answer
Question International financial function of the organisation comprises of :
Correct Answer Study of flow of funds beyond national boundaries , Exchange of currencies
Your Answer Study of flow of funds beyond national boundaries , Exchange of currencies

Select The Blank
Question Under ________, it is not only necessary to decide profitable investments but also necessary to rank the acceptable proposals according to their relative profitabilities
Correct Answer Capital rationing
Your Answer capital forecasting

True/False
Question Premium paid on the life policy of the proprietor is debited to the Profit and Loss Account
Correct Answer False
Your Answer False

Match The Following
Question Correct Answer Your Answer

Risk adjusting discounting rate method of capital budgeting decision discounting rate is increased in case of projects involving greater risk discounting rate is increased in case of projects involving greater risk

Capital rationing situation where the company has more acceptable proposals requiring a greater amount of funds situation where the company has more acceptable proposals requiring a greater amount of funds

Problems relating to situation of capital rationing Project Indivisibility Project Indivisibility

Informal method of capital budgeting decision subjective method subjective method


Select The Blank
Question ________ is the most important ratio to measure whether the firm has earned sufficient returns for its shareholders or not
Correct Answer Return on Shareholders funds
Your Answer Return on Shareholders funds

Select The Blank
Question ________ is calculated on the basis of current profits and not on the basis of retained profits
Correct Answer Earnings per share
Your Answer Earnings per share

Select The Blank
Question To meet the working capital needs of the company, banks may grant the working capital term loans for a period of ________
Correct Answer 3 to 7 years
Your Answer 3 to 7 years

Select The Blank
Question under no circumstances , ________ term requirement of funds should be met out of short term sources of funds
Correct Answer long
Your Answer long

Multiple Choice Single Answer
Question The "Pre-emptive right" of the equity shareholder is
Correct Answer the right to purchase new shares in the same proportion as their current ownership
Your Answer the right to purchase new shares in the same proportion as their current ownership

Select The Blank
Question Retained earnings indicates that whatever profits are earned by the company are not distributed by it by way of ________ but are kept aside for use in future for expansion or other purpose
Correct Answer Dividend
Your Answer Dividend

Multiple Choice Multiple Answer
Question The factor may provide the following services to the client
Correct Answer It may undertake the credit analysis of the customers of the client , It will undertake the various book-keeping and accounting activities in relation to the receivables management , It undertakes the responsibility of following up with the customers for the purpose of making the collection from the customer
Your Answer It may undertake the credit analysis of the customers of the client , It will undertake the various book-keeping and accounting activities in relation to the receivables management , It undertakes the responsibility of following up with the customers for the purpose of making the collection from the customer

Multiple Choice Single Answer
Question That part of the inventory which does not become a part of final product but are required for production process is termed as
Correct Answer Stores and supplies
Your Answer Stores and supplies

Multiple Choice Single Answer
Question The traditional approach to financial management refers only to the procurement of funds by
Correct Answer Corporate entity
Your Answer Corporate entity

True/False
Question In case of Without Recourses factoring, the risk on account of non-payment by the customer is assumed by the selling company
Correct Answer False
Your Answer False

Match The Following
Question Correct Answer Your Answer

Advantage of Net present value considers cash inflows from the project throughout its life considers cash inflows from the project throughout its life

Disadvantage of Accounting rate of return uses profits after depreciation and taxes and not the cash inflows for evaluating the projects uses profits after depreciation and taxes and not the cash inflows for evaluating the projects

Disadvantage of Pay back period ignores time value of money ignores time value of money

Advantage of Discounted Pay back period considers time value of money considers time value of money


Multiple Choice Multiple Answer
Question Fund based lending of banks include
Correct Answer Overdraft , Bills Purchased
Your Answer Overdraft , Bills Purchased

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Posted in: Financial Management (Set VI)