Business Finance - Study Mode

[#506] Internal source of finance do not include
Correct Answer

(D) trade credit

[#507] Statement I: Working capital leverage measures the responsiveness of return on equity for changes in current assets. Statement II: When the annual demand for an item is 3,200 units, unit cost Rs. 6, inventory carrying charges 25% per annum and cost of one procurement Rs. 150, the economic ordering quantity would be 700 units.
Correct Answer

(B) Both statements are false

[#508] Which of the following is not a feature of payback period method?
Correct Answer

(D) It is very difficult to calculate

[#509] Concentration banking is a method of
Correct Answer

(A) Decentralised collection

[#510] In certainty equivalent approach, adjusted cash flows are discounted at
Correct Answer

(B) Internal rate of return