Finance Mcqs
Average Accounting Return is a measure of accounting profit relative to:

A. Book value
B. Intrinsic value
C. Cost
D. Market value

Which of the following is the cheapest source of financing available to a firm?

A. Bank loan
B. Commercial papers
C. Trade credit
D. None of the given options.

The use of Personal borrowing to alter the degree of financial leverage is called__________?

A. Homemade leverage
B. Financial leverage
C. Operating leverage
D. None of the given option

_________ refers to the most valuable alternative that is given up if a particular investment is undertaken?

A. Sunk cost
B. Opportunity cost
C. Financing cost
D. All of the given options

A model which makes an assumption about the future growth of dividends is known as:

A. Dividend Price Model
B. Dividend Growth Model
C. Dividend Policy Model
D. All of the given options

Which of the following is not a quality of IRR ?

A. Most widely used
B. Ideal to rank the mutually exclusive investments
C. Easily communicated and understood
D. Can be estimated even without knowing the discount rate

The conflict of interest between stockholders and management is known as:

A. Agency problem
B. Interest conflict
C. Management conflict
D. Agency cost

Which of the following form of business organization is least regulated?

A. Sole-proprietorship
B. General Partnership
C. Limited Partnership
D. Corporation