Business Finance - Practice Test

[#226] Who gave the concept of monetarism?

(A) Milton Friedman

(B) J. M. Keynes

(C) Harry Dexter White

(D) Raghuram Rajan

Correct Answer

(A) Milton Friedman

[#227] Which of the following is not true with reference to capital budgeting?

(A) Capital budgeting is related to asset replacement decisions

(B) Cost of capital is equal to the minimum required rate of return

(C) Timing of cash flows is relevant

(D) Existing investment in a project is not treated as a sunk cost

(E) Capital budgeting is related to asset replacement decisions

(F) Cost of capital is equal to minimum required rate of return

(G) Timing of cash flows is relevant

(H) Existing investment in a project is not treated as sunk cost

Correct Answer

(D) Existing investment in a project is not treated as a sunk cost
(H) Existing investment in a project is not treated as sunk cost

[#228] A contract that requires the investor to sell securities on a future date is called a

(A) short contract

(B) long contract

(C) hedge

(D) micro hedge

Correct Answer

(A) short contract

[#229] Which of the following statements is/are incorrect?

(A) Retained earnings as a source of financing is most useful for a new company

(B) The terms 'permanent working capital' and 'core current assets' have synonymous meanings

(C) Both A and B

(D) None of the above

Correct Answer

(A) Retained earnings as a source of financing is most useful for a new company

[#230] When supplier extend credit to the buyer, it is called

(A) trade credit

(B) instalment credit

(C) Both A and B

(D) None of these

Correct Answer

(A) trade credit

Business Finance - Study Mode

[#226] Who gave the concept of monetarism?

Correct Answer

[#227] Which of the following is not true with reference to capital budgeting?

Correct Answer

[#228] A contract that requires the investor to sell securities on a future date is called a

Correct Answer

[#229] Which of the following statements is/are incorrect?

Correct Answer

[#230] When supplier extend credit to the buyer, it is called

Correct Answer