Business Finance - Practice Test

[#346] One difference between a financial lease and operating lease is that

(A) there is a often a call option in a financial lease

(B) there is often an option to buy in an operating lease

(C) an operating lease is often cancellable by the lessee

(D) a financial lease is often cancellable by the lessee

Correct Answer

(C) an operating lease is often cancellable by the lessee

[#347] Assertion (A): The comparative cost theory is static in character. Reason (R): The comparative cost theory is based on fixed supplies of factors of production.

(A) (A) is correct, but (R) is incorrect

(B) (R) is correct, but (A) is incorrect

(C) (A) and (R) both are correct, but (R) is not the correct explanation of (A)

(D) (A)and (R) both are correct, and (R) is the correct explanation of (A)

Correct Answer

(D) (A)and (R) both are correct, and (R) is the correct explanation of (A)

[#348] In the foreign exchange market, the . . . . . . . . of one country is traded for the . . . . . . . . of another country.

(A) currency, currency

(B) currency, financial instruments

(C) currency, goods

(D) goods, goods

Correct Answer

(A) currency, currency

[#349] Which of the following are the main benefits of non-voting shares to a company?

(A) It may protect the company from hostile takeovers

(B) The voting rights may not be provided to such shareholders

(C) Non-voting shareholders may be given a higher dividend

(D) All of the above

Correct Answer

(D) All of the above

[#350] The Finance Act, 2020, changed the method of dividend taxation. Which of the following facts are related to dividend taxation?

(A) The dividend receivedfrom an Indian company was exempt until 31 st March 2020 (FY2019-20), as the company declaring such dividend already paid dividend distribution tax before making payment

(B) All the dividend receivedon or after 1 st April 2020, is taxable in the hands of the investor or shareholder

(C) The DDT liability on companies and mutual funds stand withdrawn

(D) All of the above

Correct Answer

(D) All of the above

Business Finance - Study Mode

[#346] One difference between a financial lease and operating lease is that

Correct Answer

[#347] Assertion (A): The comparative cost theory is static in character. Reason (R): The comparative cost theory is based on fixed supplies of factors of production.

Correct Answer

[#348] In the foreign exchange market, the . . . . . . . . of one country is traded for the . . . . . . . . of another country.

Correct Answer

[#349] Which of the following are the main benefits of non-voting shares to a company?

Correct Answer

[#350] The Finance Act, 2020, changed the method of dividend taxation. Which of the following facts are related to dividend taxation?

Correct Answer