Business Finance - Practice Test

[#171] Which of the following is not a disclosure requirement for finance leases?

(A) Carrying amount of asset

(B) Market value of asset

(C) General description of significant leasing arrangements

(D) Reconciliation between total minimum lease payments and their present value

Correct Answer

(B) Market value of asset

[#172] Which of the following options are a part of preference shares?

(A) They are not allowable for corporation tax

(B) They receive dividends

(C) They have no voting rights

(D) They are not a part of a company's share capital

Correct Answer

(B) They receive dividends

[#173] Under dividend reinvestment plan (DRIP):

(A) The dividends are not passed on to investors in the form of money

(B) It allows shareholders to automatically reinvest dividend payments in some scheme or additional shares of the firm's stock

(C) Both A and B

(D) It is a mandatory plan where shareholders are automatically reinvesting dividend payments in additional shares of the firm's stock at a reduced price

Correct Answer

(C) Both A and B

[#174] A company may raise the financial capital in the primary market through

(A) Public issue

(B) Rights issue

(C) Bough tout deals

(D) All of the above

Correct Answer

(D) All of the above

[#175] Which of the following is concerned with the maximization of a firm's stock price?

(A) Shareholder wealth maximization

(B) Profit maximization

(C) Stakeholder welfare maximization

(D) EPS maximization

Correct Answer

(A) Shareholder wealth maximization

Business Finance - Study Mode

[#171] Which of the following is not a disclosure requirement for finance leases?

Correct Answer

[#172] Which of the following options are a part of preference shares?

Correct Answer

[#173] Under dividend reinvestment plan (DRIP):

Correct Answer

[#174] A company may raise the financial capital in the primary market through

Correct Answer

[#175] Which of the following is concerned with the maximization of a firm's stock price?

Correct Answer