Prepare Strategic Financial Management mcq set 1 for your bba mba courses. Then you can give exam quiz of Strategic Financial Management for assess your knowledge.
MCQ of Strategic Financial Management set 1
1. A set of guidelines about dividend is known as ___
A. dividend policy
B. profit
C. loss
D. expenses
Answer
A. dividend policy
2. There are two approaches to dividend policy ___
A. relevance, irrelevance
B. final dividend
C. interims dividend
D. annual dividend
Answer
A. relevance, irrelevance
3. XBRL stands for ___
A. u.s securities exchange communication adopted a final rule for adoption
B. ifsb released an expanded ifrs, xbrl
C. extensible business reporting language
D. ifar
Answer
C. extensible business reporting language
4. XBRL presents solution to ___ problem.
A. registered company
B. government corporation
C. communication
D. unregistered company
Answer
C. communication
5. The project with ___ co-efficient of variation should be selected.
A. lesser
B. management
C. higher
D. medium
Answer
A. lesser
6. Under standard deviation ___ of cash flow is ascertained.
A. dispersion
B. subjective
C. objective
D. comparative
Answer
A. dispersion
7. Capital rationing is selection of investment proposal under ___
A. constraint
B. weakness of capital market
C. funds are scare today
D. very strong
Answer
A. constraint
8. ___ provides details of compliance of corporate governance.
A. annual report
B. board of directors
C. independent audit committee
D. employees
Answer
A. annual report
9. Investment in venture capital fund carries ___ % risk.
A. 1.5
B. 2
C. 1
D. 0.5
Answer
A. 1.5
10. MPBF refers to
A. maximum permissible bank finance
B. minimum permissible bank financ
C. bank overdraft
D. cash credit
Answer
A. maximum permissible bank finance
11. Ploughing back of profit means
A. declaration of dividend
B. retainning profits
C. re-investing profits
D. building reserves
Answer
B. retainning profits
12. The first taxonomy for financial reporting was released on
A. 30th june,2003
B. 31st july,2000
C. 26th january, 2003
D. 15th august, 2009
Answer
B. 31st july,2000
13. Banks in India have to achieve C.A. Ratio of
A. 9%
B. 15%
C. 5%
D. 10%
Answer
A. 9%
14. Amalgamation is governed by
A. as 14
B. as 3
C. as 21
D. as 32
Answer
A. as 14
15. The % of provision required on sub-standard asset on secured portion is:
A. 15%
B. 12%
C. 10%
D. 5%
Answer
A. 15%
16. The % of provision on unsecured portion of doubtful asset is:
A. 125%
B. 100%
C. 75%
D. 25%
Answer
B. 100%
17. Cash credit and overdrafts is considered as NPA when is remains out of order for more than:
A. 90 days
B. 30 days
C. 60 days
D. 45 days
Answer
A. 90 days
18. The models known as bird in the hand argument
A. gordons model
B. walters model
C. fayol’s model
D. henry model
Answer
A. gordons model
19. Loans upto Rs. 1,00,000 against gold and silver ornaments carry risk
A. 50%
B. 10%
C. 100%
D. 20%
Answer
B. 10%
20. Provision for standard asset in respect of advances to commercial Real Estate sector is
A. 1%
B. 2%
C. 2%
D. 0%
Answer
D. 0%
21. The policy in which less dividend is paid is
A. liberal dividend policy
B. conservative dividend policy
C. stable dividend policy
D. fluctuating dividend policy
Answer
B. conservative dividend policy
22. Present Value of a Rupee is always:
A. equal to its future value.
B. greater than its future value.
C. less than its future value
D. is not related to its future value
Answer
C. less than its future value
23. An ideal current ratio must be ___
A. 2 : 1
B. 1 : 2
C. 1 : 1
D. 2.5 : 1
Answer
A. 2 : 1
24. The abbreviation “IPO” stands for ___
A. indian public offer
B. indian post office
C. initial private offer
D. initial public offering.
Answer
D. initial public offering.
25. ___ . shares are issued free of cost
A. equity
B. rights
C. preference.
D. bonus
Answer
D. bonus
26. SEBI Act was passed in the year ___
A. 1956
B. 1988
C. 1992
D. 1947
Answer
C. 1992
27. Goodwill is an example of ___ asset
A. tangible.
B. intangible.
C. fictitious
D. current
Answer
B. intangible.
28. Traditionally UTI was a ___
A. bank
B. mutual fund.
C. financial institution
D. insurance company
Answer
B. mutual fund.
29. Members of recognised stock exchanges are termed as
A. brokers
B. underwriters
C. shareholder s
D. lead managers.
Answer
A. brokers
30. A shareholder invests in a Company’s Shares mainly ___
A. for capital appreciation
B. to receive dividends.
C. to receive bonus and rights shares
D. to receive interest on investment regularly.
Answer
A. for capital appreciation
31. Which of the following is not applicable to IRR?
A. considers all cash flows
B. based on time value of money
C. common for all projects
D. stated in % return
Answer
C. common for all projects
32. PQR Ltd. Is a profit-making company. It is absorbed into another group company XYZ Ltd. Which is a loss Company. This case is off
A. hostile takeover bid
B. horizontal merger
C. reverse merger
D. takeover
Answer
C. reverse merger
33. ABC Ltd. acquires hundred percent of preference share capital of PQR Ltd. It would result in
A. hostile takeover bid
B. vertical merger
C. no relationship
D. holding subsidiary relationshi p
Answer
D. holding subsidiary relationshi p
34. TCs Ltd. acquires HCL Ltd., MPS of HCL Ltd. Is Rs.20 and EPS is Rs. 5 for an exchange ratio of 1.5: 1, what was the PE ratio used in acquiring HCL Ltd.?
A. rs. 4
B. rs. 5
C. rs. 6
D. rs. 2.67
Answer
C. rs. 6
35. Commercial papers is a type of
A. fixed coupon bond
B. unsecured short term debt
C. equity share capital
D. governmen t bond
Answer
B. unsecured short term debt
36. Which of the followings is an item of Current Liability?
A. bank balance
B. bank overdraft
C. cash balance
D. unsecured loans
Answer
B. bank overdraft
37. In the Balance-sheet ___ stock is indicated
A. opening
B. closing
C. average
D. finished goods
Answer
B. closing
38. Rights issue is also called as ___
A. privileged subscription.
B. equity shares
C. stock dividend.
D. bonus shares
Answer
A. privileged subscription.
39. ___ increases the number of shares without actually increasing the paid – up value of the share capital.
A. consolidation of shares.
B. stock split- ups
C. bonus issue
D. rights issue
Answer
B. stock split- ups
40. A merchant banker ___
A. is a bank of merchants and businessmen.
B. provides loan to merchants.
C. accepts deposits from merchants.
D. renders corporate advisory services.
Answer
D. renders corporate advisory services.
