Financial Management B-103

Topics: Finance, Corporate finance, Investment Pages: 3 (633 words) Published: November 15, 2011
IIBM Institute of Business Management
Financial Management
Subject Code –B-103

Section A: Objective Type
Multiple choices Question With Single Response:
Q.1 The approach focused mainly on the financial problems of corporate enterprise. a. Ignored non-corporate enterprise
b. Ignored working capital financing
c. External approach
d. ignored routine problems
Q 2 These are those shares, which can be redeemed or repaid to the holders after a lapse of the stipulated period. a . Cumulative preference shares
b. Non-cumulative preference shares
c. Redeemable preference shares
d. Perpetual shares
Q 3. This type of risk arise from changes in environmental regulations, zoning requirement, fees, licenses and most frequently taxes. a. Political risk
b. Domestic risk
c. International risk
d. industry risk
Q 4. It is the cost of capital that is expected to raise funds to finance a capital budget or investment proposal. a. Future cost
b. Specific cost
c. Spot cost
d. Book cost

Q 5. The concept is helpful in formulating a sound & economical capital structure for a firm. a. Financial performance appraisal
b. Investment evaluation
c. Designing optimal corporate capital structure
d. None of the above
Q 6. It is the minimum required rate of return needed to justify the use of capital. a. From investors
b. Firms point
c. Capital expenditure point
d. Cost of capital
Q. 7 . It arises when there is a conflict of interest among owners, debenture holders and the management. a. Seasonal variation
b. Degree of competition
c. Industry life cycle
d. Agency costs
Q 8. Some guidelines on shares & debentures issued by the government that are very important...
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