Financial Management - Study Mode

[#1076] Partners who are only liable for their own part of investment are considered as
Correct Answer

(C) limited partners

Explanation

Solution: Partners who are only liable for their own part of investment are considered as corporate partners. Corporate Partnership is an exclusive academic-corporate partnership based on Corporate Partners contributing to the Alliance and its MIM programme and benefitting from privileged access to a global pool of top talent from the world’s leading business schools.

[#1077] Sales revenue Rs 90,000, operating taxes Rs 30,000 and operating capital Rs 15,000 then value of free cash flows will be
Correct Answer

(A) Rs 45,000.00

Explanation

Solution: Free cash flow = Sales revenue - Operating taxes - Operating capital = Rs. 90000 - Rs. 30000 - Rs. 15000 = Rs. 45000.

[#1078] Legal entity separation from its legal owners and managers with help of state laws is classified as
Correct Answer

(B) Corporation

Explanation

Solution: Legal entity separation from its legal owners and managers with help of state laws is classified as Corporation. A corporation is a legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes.

[#1079] Cost of money is affected by factors which includes
Correct Answer

(D) inflation

Explanation

Solution: Cost of money is affected by factors which includes inflation. The cost of money changes with variance in interest rates, and is used to gauge the opportunity costs involved in the potential investment of that money in securities or other assets.

[#1080] In weighted average capital, capital structure weights estimation does not rely on value of
Correct Answer

(C) book value of equity

Explanation

Solution: In weighted average capital, capital structure weights estimation does not rely on value of book value of equity. Book value of equity, also known as shareholder's equity, is a firm's common equity that represents the amount available for distribution to shareholders.