Business Finance - Study Mode
[#261] Which one of the following emphasises the qualitative aspects of working capital maangement?
Correct Answer
(C) Net working capital
[#262] Assertion (A): The IRR of a project is the discount rate which reduces its NPV to zero. Reason (R): A project is worth accepting if the IRR exceeds the cost of capital.
Correct Answer
(B) Both (A) and (R) are true
[#263] Select the correct answer of the following statements Statement (I): A Global Depositary Receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company. Statement (II): A GDR is similar to American Depositary Receipt (ADR). Statement (III): GDRs are called EDRs when private markets are anempting to obtain euros.
Correct Answer
(A) Statements (I), (II) and (III) are correct
[#264] Select the correct answer regarding motives for holding inventories by firms. 1. Transaction motive 2. Environmental motive 3. Precautionary motive 4. Speculative motive 5. Competitive motive
Correct Answer
(D) 1, 3 and 5
[#265] Which of the following approaches would be consistent with a hedging (maturity matching) approach to financing working capital?
Correct Answer
(A) Financing short-term needs with short-term funds