Business Finance - Study Mode
[#471] Match the following. List-I List-II a. Gross working capital 1. Difference of current assets and current liabilities b. Net working capital 2. It is referred to as "hardcore working capital" c. Permanent working capital 3. It is the excess of working capital over permanent working capital d. Variable working capital 4. Total current assets
Correct Answer
(A) a-4, b-1, c-2, d-3
[#472] Which of the following statements are true on wealth maximization? (i) It takes into account the long-term approach. (ii) It recognizesthe risk of uncertainty. (iii) It takes into account the time value of money. (iv) It takes into account the returns. (v) It ignores stock market prices.
Correct Answer
(D) (i), (ii), (iii) and (iv)
[#473] If a firm moves from a 'conservative' working capital policy to an 'aggressive' policy, it should expect
Correct Answer
(B) Expected profitability to increase, whereas risk would decrease
[#474] A multinational company that is faced with mild interference upto complete confiscation of all assets is encountering
Correct Answer
(C) political risk exposure
[#475] External source of finance do not include
Correct Answer
(D) retained earnings