traditionally avails are provided by .

14. government has made it mandatory to include in their annual reports information on customers,
processes & human capital.

18. Equity includes :-

Deferred Payment Liabilities

Development Rebate Reserve
Loans from other Corporates
Interest Payable

21.
1. Fiscal advantage, the
interest of financing with debt
2. Financing with a high
percentage of debt
3. Firms must repay debts
4. A highly leveraged firm
1. Employees & trade unions
increase their demands
2. Is deductible from the profit
3. Shows the illusion of financial
problems
4. Not necessary to have discussions
regarding the sell out of assets
5. Prevents firms from investing too
much
6. Discussions about the sell out of
assets must be made

24. Capital gains are taxed at .

45. know the best about a firm's performance.

49. When a firm invests in human resources by acquisition & training, it anticipates a

50. Investment decisions are mainly concerned with :-

Liabilities
Equity
Assets
Leverage

53. As per Pecking order theory, which is the costliest means of funding :-

1
Secured debt
Unsecured debt
Equity Shares
Preference Shares

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

2
Multiple Choice Multiple Answer
Question To overcome the problems of matching data the actions can be taken as
follows :-
Correct Answer Keep extensive records of the process , Maintain detailed procedures , Keep
records of assumptions as an audit trail
Your Answer Keep extensive records of the process , Maintain detailed procedures , Keep
records of assumptions as an audit trail

Select The Blank

Question In the shareholding pattern of a company, the promoter's holding
includes________.
Correct Answer Foreign Promoters
Your Answer Foreign Promoters

Multiple Choice Multiple Answer

Question A current investment is an investment that is by nature :-
Correct Answer Readily realisable , Intended to be held for not more than 1year from the date
on which investment is made
Your Answer Readily realisable , Intended to be held for not more than 1year from the date
on which investment is made

True/False
Question Trade credit creates book debts which the firm is expected to collect in the
near future.
Correct Answer True
Your Answer True

True/False
Question The chance of bankruptcy is small when the leverage of a firm is small.
Correct Answer True

Multiple Choice Multiple Answer

Question The 3 groups of participants in a firm are :-
Correct Answer Suppliers of equity , Debt suppliers , Firm Managers
Your Answer Suppliers of equity , Debt suppliers , Firm Managers
Multiple Choice Multiple Answer
Question The financial managers of a company consume a great deal of their time in
activities like :-
Correct Answer Monitoring the investment in inventories , Negotiating favourable credit terms
, Administrating Accounts receivables
Your Answer Monitoring the investment in inventories , Negotiating favourable credit terms
, Defining a proper strategy for product promotion

True/False
Question Appraisal value of a firm can be acquired from an independent appraisal
3
4