traditionally avails are provided by .

 

Marks : 2 

14.	government has made it mandatory to include in their annual reports information on customers, processes & human capital.

Marks : 2 

a)

b)

c)

d)

Deferred Payment Liabilities

Development Rebate Reserve

Loans from other Corporates

Interest Payable

18.	Equity includes :-

 

 1. Fiscal advantage, the interest of financing with debt   

 
   

 1.  Employees & trade unions increase their demands

 2. Financing with a high percentage of debt   

 
   

 2.  Is deductible from the profit

 3. Firms must repay debts   

 
   

 3.  Shows the illusion of financial problems

 4. A highly leveraged firm   

 
   

 4.  Not necessary to have discussions regarding the sell out of assets

   

               

 5.  Prevents firms from investing too much

   

               

 6.  Discussions about the sell out of assets must be made

21.

Marks : 2 

24.	Capital gains are taxed at .

 

Marks : 2 

45.	know the best about a firm's performance.

 

 

Marks : 2 

49.	When a firm invests in human resources by acquisition & training, it anticipates a

 

Marks : 2 

a)

b)

c)

d)

Liabilities

Equity

Assets

Leverage

50.	Investment decisions are mainly concerned with :-

 

Marks : 2 

a)

b)

c)

d)

Secured debt

Unsecured debt

Equity Shares

Preference Shares

53.	As per Pecking order theory, which is the costliest means of funding :-

Top of Form

 

 Multiple Choice Single Answer

  Question  

Any addition or extension to an existing asset which retains a separate identify & is capable of being used after the existing asset is disposed of :-

  Correct Answer  

Is depreciated independently

  Your Answer  

Is depreciated along with the existing asset

 

 True/False

  Question  

In market value approach, interested parties never manipulate the stock markets.

  Correct Answer  

False

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

For accounting standard (AS) 27, Significant influence may be gained by :-

  Correct Answer  

Share ownership , Statute , Agreement

  Your Answer  

Share ownership , Statute , Agreement

 

 Multiple Choice Single Answer

  Question  

Accounts payable is also known as :-

  Correct Answer  

Trade credit from suppliers

  Your Answer  

Trade credit from suppliers

 

 Select The Blank

  Question  

Earning power of the company approach tries to value the ________.

  Correct Answer  

Current value of the assets

  Your Answer  

Current value of the assets

 

 Match The Following

Question

Correct Answer

Your Answer

Free cash flow theory

Enormous conflicts of interest between Stakeholders and shareholders

Enormous conflicts of interest between Stakeholders and shareholders

Net income approach

Cost of debt & equity do not change with a change in leverage ratio

Cost of debt & equity do not change with a change in leverage ratio

Net operating income approach

The overall capitalization rate remains constant for all levels of financial leverages

The overall capitalization rate remains constant for all levels of financial leverages

Modigliani - Miller Theory

weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure

weighted average cost of capital does not change with a change in the proportion of debt to equity in the capital structure

 

 Multiple Choice Single Answer

  Question  

Where the management's estimate of the useful life of an asset of the enterprise is shorter than that envisaged under the provisions of the relevant statute, the depreciation provision is approximately computed :-

  Correct Answer  

By applying a higher rate

  Your Answer  

By applying a lower rate

 

 Multiple Choice Single Answer

  Question  

What is a very important factor in any kind of merger?

  Correct Answer  

Exchange ratio

  Your Answer  

Post merger price

 

 Select The Blank

  Question  

Segment expense includes ________.

  Correct Answer  

The relevant portion of enterprise revenue that can be allocated on a reasonable basis to a segment

  Your Answer  

General administrative expenses

 

 Multiple Choice Single Answer

  Question  

The depreciable assets are assets which are expected to be used :-

  Correct Answer  

During more than 1 accounting period

  Your Answer  

During more than 1 accounting period

 

 True/False

  Question  

Arbitrage process implies that security cannot sell at different prices.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

Which is an example out of the following to which special consideration apply for depreciation :-

  Correct Answer  

Regenerative natural resources

  Your Answer  

Regenerative natural resources

 

 True/False

  Question  

Baumul`s Model is similar to EOQ model in inventory management.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

Financial evaluation involves :-

  Correct Answer  

Determining the earnings , Areas of risk , Best way to finance a merger

  Your Answer  

Determining the earnings , Areas of risk , Best way to finance a merger

 

 Multiple Choice Single Answer

  Question  

The difference between current assets & current liabilities is known as :-

  Correct Answer  

Net working capital

  Your Answer  

Net working capital

 

 Select The Blank

  Question  

Stock repurchases ________ the debt / equity ratio.

  Correct Answer  

Increases

  Your Answer  

Increases

 

 Multiple Choice Single Answer

  Question  

Which of the following systems identifies each of the organizational elements of the traditional bureaucratic structure and applies the identifiable costs of that element accordingly?

  Correct Answer  

Organization element accounting

  Your Answer  

Organization element accounting

 

 Multiple Choice Multiple Answer

  Question  

The major conditions to be fulfilled for buyback of shares as per the legal provisions include :-

  Correct Answer  

Articles of association should authorize buyback of shares , The shares which are sought to be bought back should be fully paid up , After the buy back the ratio of debt to total capital and free reserves should not be more than 2 : 1

  Your Answer  

After the buy back the ratio of debt to total capital and free reserves should not be more than 2 : 1 , Articles of association should authorize buyback of shares , The shares which are sought to be bought back should be fully paid up

 

 True/False

  Question  

Determination of residual value of an asset is normally a difficult matter.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

Free Reserves is a component of :-

  Correct Answer  

Equity

  Your Answer  

Equity

 

 Multiple Choice Single Answer

  Question  

Short term sources of funds include :-

  Correct Answer  

Current Liabilities

  Your Answer  

Capital

 

 True/False

  Question  

To `gather costs', means capturing all relevant expenses that pertain to the selected model and processes.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Single Answer

  Question  

When a company has resorted to buyback of its shares it cannot make a further issue of the same kind of securities within a period of how many months?

  Correct Answer  

6 months

  Your Answer  

6 months

 

 Select The Blank

  Question  

At times managers invest in projects that improve the company's ________.

  Correct Answer  

Prestige or power

  Your Answer  

Value

 

 Multiple Choice Multiple Answer

  Question  

It is the activity accountant's job to do the following for the existing organisational structure :-

  Correct Answer  

To define the costs , To refine the costs , To document the costs

  Your Answer  

To define the costs , To document the costs , Support the costing of the activities

 

 Multiple Choice Single Answer

  Question  

One of the important assumptions for capital structure theories is :-

  Correct Answer  

Debt and equity are the 2 kinds of funds used by the firm

  Your Answer  

Debt and equity are the 2 kinds of funds used by the firm

 

 True/False

  Question  

Assets held as stock - in - trade are also investments.

  Correct Answer  

False

  Your Answer  

True

 

 Select The Blank

  Question  

As per residual theory of dividends the focus is on ________.

  Correct Answer  

Growth

  Your Answer  

Payout of dividends even if the funds are unavailable

 

 Multiple Choice Single Answer

  Question  

Profitability of a company depends upon :-

  Correct Answer  

Cost of capital

  Your Answer  

Earning per share

 

 Select The Blank

  Question  

HLL the largest FMCG company has a turnover of Rs. ________.

  Correct Answer  

118 Bn

  Your Answer  

1000 crores

 

 Multiple Choice Multiple Answer

  Question  

The characteristics of working capital are :-

  Correct Answer  

It is continually required for a going concern , Quantum of working capital fluctuates depending on the level of activity , It is impacted by numerous transactions on a continuous basis

  Your Answer  

It is continually required for a going concern , Quantum of working capital fluctuates depending on the level of activity , It is impacted by numerous transactions on a continuous basis

 

 Multiple Choice Multiple Answer

  Question  

If a firm diversifies managerial teams formed can be shifted from unproductive activities to productive ones which leads to :-

  Correct Answer  

Improved profitability , Continuity , Growth of the firm

  Your Answer  

Improved profitability , Continuity , Growth of the firm

 

 Multiple Choice Single Answer

  Question  

In the tender offer, the purchaser approaches :-

  Correct Answer  

The shareholder

  Your Answer  

The shareholder

 

 Multiple Choice Multiple Answer

  Question  

To overcome the problems of matching data the actions can be taken as follows :-

  Correct Answer  

Keep extensive records of the process , Maintain detailed procedures , Keep records of assumptions as an audit trail

  Your Answer  

Keep extensive records of the process , Maintain detailed procedures , Keep records of assumptions as an audit trail

 

 Select The Blank

  Question  

In the shareholding pattern of a company, the promoter's holding includes________.

  Correct Answer  

Foreign Promoters

  Your Answer  

Foreign Promoters

 

 Multiple Choice Multiple Answer

  Question  

A current investment is an investment that is by nature :-

  Correct Answer  

Readily realisable , Intended to be held for not more than 1year from the date on which investment is made

  Your Answer  

Readily realisable , Intended to be held for not more than 1year from the date on which investment is made

 

 True/False

  Question  

Trade credit creates book debts which the firm is expected to collect in the near future.

  Correct Answer  

True

  Your Answer  

True

 

 True/False

  Question  

The chance of bankruptcy is small when the leverage of a firm is small.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

The 3 groups of participants in a firm are :-

  Correct Answer  

Suppliers of equity , Debt suppliers , Firm Managers

  Your Answer  

Suppliers of equity , Debt suppliers , Firm Managers

 

 Multiple Choice Multiple Answer

  Question  

The financial managers of a company consume a great deal of their time in activities like :-

  Correct Answer  

Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables

  Your Answer  

Monitoring the investment in inventories , Negotiating favourable credit terms , Defining a proper strategy for product promotion

 

 True/False

  Question  

Appraisal value of a firm can be acquired from an independent appraisal agency.

  Correct Answer  

True

  Your Answer  

True

 

 Multiple Choice Multiple Answer

  Question  

The following categories of personnel are taken into account to calculate the actual manpower strength :-

  Correct Answer  

Full time equivalents , Temporary staff , Part time personnel

  Your Answer  

Full time equivalents , Temporary staff , Casual workers

 

 Multiple Choice Multiple Answer

  Question  

Accrued expenses represent :-

  Correct Answer  

Costless financing , An interest free source of financing

  Your Answer  

Costless financing , An interest free source of financing , Truly discretionary financing

 

 Select The Blank

  Question  

There is a ________ relationship between the number of employees & the use of operating supplies.

  Correct Answer  

Natural

  Your Answer  

Natural

 

 Match The Following

Question

Correct Answer

Your Answer

Mechanisms

Performs or provides energy to an activity

Performs or provides energy to an activity

Inputs

Information or material used to produce the output of an activity

Information or material used to produce the output of an activity

Controls

Information or material that constrains an activity

Information or material that constrains an activity

Outputs

Information or material produced by an activity

Information or material produced by an activity

 

 Multiple Choice Single Answer

  Question  

Value added analysis :-

  Correct Answer  

Helps to identify potential activities that may be omitted immediately

  Your Answer  

Does not assist the planners & project teams

 

 True/False

  Question  

Notes payable means the buyer signs a note that evidences a debt to the seller.

  Correct Answer  

True

  Your Answer  

True

	LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Bottom of Form

 

 

	Score Card

	Registration Number:	200404214
	Name:	Manpreet Malhotra
	Subject:	Strategic Finance
	Assignment Status As On:	21/03/2006

 Result for this Assignment

 Assignment Date

 20/03/2006

 Number of Correct Questions

 30

 Number of Skipped Questions

 10

 Number of Wrong Questions

 17

 Total Questions attempted

 57

 Total Marks obtained

 68 Out of 100.

 Result

 Pass

Click here to view the list of attempted question and answers.

 

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