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[#341] Which of the following are key characteristics of ordinary shares in limited companies?

(A) Have a limited life, voting rights, and receive dividends

(B) Havea limited lifewith no voting rights, but receive dividends

(C) Have an unlimited life, voting rights, and receive dividends

(D) Havean unlimited life and voting rights, but receive no dividends

Correct Answer

(A) Have a limited life, voting rights, and receive dividends

[#342] Which form of market efficiency states that current security prices fully reflect all information, both public and private?

(A) Weak

(B) Semi-strong

(C) Strong

(D) None of the above

Correct Answer

(C) Strong

[#343] Which form of market efficiency states that current prices fully reflect the historical sequence of prices?

(A) Weak

(B) Semi-strong

(C) Strong

(D) None of the above

Correct Answer

(A) Weak

[#344] What prompted Bretton woods Agreement?

(A) To set up a system that would maintain a stable exchange rate system

(B) To create a flexible exchange rate system

(C) To stop World War II

(D) Eradicate the economic difficulties brought in by World War II

Correct Answer

(A) To set up a system that would maintain a stable exchange rate system

[#345] Match the following. List-I (Capital Structure Principles) List-II (Features) a. Cost principle 1. Management chooses such combination of sources of financing, which can easily adapt to changes b. Risk principle 2. While designing the structure, the finance manager remembers that existing management control and ownership remains undisturbed c. Control principle 3. Reliance is placed more on equity for financing capital requirements than excessive use of debts d. Flexibility principle 4. Cost of capital structure should be minimised and Earning Per Share (EPS) should be maximised

(A) a-2, b-1, c-4, d-3

(B) a-3, b-1, c-4, d-2

(C) a-3, b-4, c-1, d-2

(D) a-4, b-3, c-2, d-1

Correct Answer

(D) a-4, b-3, c-2, d-1