mgt201 solved quiz

Question # 1 of 15 ( Start time: 09:32:06 PM ) Total Marks: 1

A technique that tells us the number of years required to recover our initial cash investment based on the project’s expected cash flows is:

Select correct option:

Pay back period (Correct)

Internal rate of return

Net present value

Profitability index


Question # 2 of 15 ( Start time: 09:33:11 PM ) Total Marks: 1

Which of the following is NOT an example of a financial intermediary?

Select correct option:

Wisconsin S&L, a savings and loan association

Strong Capital Appreciation, a mutual fund

Microsoft Corporation, a software firm (Correct)

College Credit, a credit union


Question # 3 of 15 ( Start time: 09:33:49 PM ) Total Marks: 1

When a bond will sell at a discount?

Select correct option:

The coupon rate is greater than the current yield and the current yield is greater than yield to maturity

The coupon rate is greater than yield to maturity

The coupon rate is less than the current yield and the current yield is greater than the yield to maturity

The coupon rate is less than the current yield and the current yield is less than yield to maturity (Correct)


Question # 4 of 15 ( Start time: 09:34:34 PM ) Total Marks: 1

When bonds are issued, under which of the following category the value of the bond appears?

Select correct option:

Equity

Fixed assets

Short term loan

Long term loan (Correct)

Question # 5 of 15 ( Start time: 09:35:06 PM ) Total Marks: 1

Which of the following can not be the drawback of using payback period technique of capital budgeting?

Select correct option:

It does not account for time value of money

It neglects cash flows after the payback period

It does not use interest rate while making calculations

It is a tricky and complicated method (Correct)


Question # 6 of 15 ( Start time: 09:35:46 PM ) Total Marks: 1

An investment proposal should be judged in whether or not it provides:

Select correct option:

A return equal to the return require by the investor

A return more than required by investor (Correct)

A return less than required by investor

A return equal to or more than required by investor



Question # 7 of 15 ( Start time: 09:36:51 PM ) Total Marks: 1

Which of the following is a major disadvantage of the corporate form of organization?

Select correct option:

Double taxation of dividends (Correct)

Inability of the firm to raise large sums of additional capital

Limited liability of shareholders

Limited life of the corporate form


Question # 8 of 15 ( Start time: 09:37:49 PM ) Total Marks: 1

Which of the following is NOT an example of hybrid equity

Select correct option:

Convertible Bonds

Convertible Debenture

Common shares (Correct)

Preferred shares


Question # 9 of 15 ( Start time: 09:38:55 PM ) Total Marks: 1

Which of the following is/are the component(s) of working capital management?

Select correct option:

Current assets (Correct)

Fixed assets

Fixed assets and long-term liabilities

Current assets and current liabilities


Question # 10 of 15 ( Start time: 09:40:18 PM ) Total Marks: 1

Which of the following statements (in general) is correct?

Select correct option:

A low receivables turnover is desirable

The lower the total debt-to-equity ratio, the lower the financial risk for a firm (Correct)

An increase in net profit margin with no change in sales or assets means a weaker ROI

The higher the tax rate for a firm, the lower the interest coverage ratio


Question # 11 of 15 ( Start time: 09:41:43 PM ) Total Marks: 1

What should be the focal point of financial management in a firm?

Select correct option:

The number and types of products or services provided by the firm

The minimization of the amount of taxes paid by the firm

The creation of value for shareholders

The dollars profits earned by the firm(Correct)



Question # 12 of 15 ( Start time: 09:42:43 PM ) Total Marks: 1

With continuous compounding at 8 percent for 20 years, what is the approximate future value of a Rs. 20,000 initial investment?

Select correct option:

Rs.52,000

Rs.93,219 (Correct)

Rs.99,061

Rs.915,240

Question # 13 of 15 ( Start time: 09:43:14 PM ) Total Marks: 1

Who or what is a person or institution designated by a bond issuer as the official representative of the bondholders?

Select correct option:

Indenture

Debenture

Bond

Bond trustee (Correct)


Question # 14 of 15 ( Start time: 09:44:04 PM ) Total Marks: 1

Which of the following is FALSE about Perpetuity?

Select correct option:

It is a series of cash flows

Cash flows occur for a specific time period

Its cash flows are identical (Correct)

None of the given options


Question # 15 of 15 ( Start time: 09:45:14 PM ) Total Marks: 1

Which of the following refers to bringing the future cash flow to the present time?

Select correct option:

Net present value

Discounting (Correct)

Opportunity cost

Internal rate of return

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Question # 1 of 15 ( Start time: 09:49:12 PM ) Total Marks: 1

Given no change in required returns, the price of a stock whose dividend is constant will________.

Select correct option:

Decrease over time at a rate of r%

Remain unchanged (Correct)

Increase over time at a rate of r%

Decrease over time at a rate equal to the dividend growth rate

Question # 2 of 15 ( Start time: 09:50:02 PM ) Total Marks: 1

Which of the following refers to a highly competitive market where good business ideas are taken up immediately?

Select correct option:

Capital market

Efficient market (Correct)

Money market

Real asset market

Virtual: 2

zahid.famous: 2

saadkhan545: Question # 3 of 15 ( Start time: 09:50:40 PM ) Total Marks: 1

Which of the following is the Double Entry Principle?

Select correct option:

Assets + Liabilities = Shareholders’ Equity

Assets = Liabilities + Shareholders’ Equity

Liabilities = Assets + Shareholders’ Equity (Correct)

None of the given options

Question # 4 of 15 ( Start time: 09:51:21 PM ) Total Marks: 1

Which of the following equation is NOT correct?

Select correct option:

Gross Revenue – Admin & Operating Expenses = Operating Revenue

Other Expenses + Other Revenue = EBIT (Correct)

EBIT – Financial Charges & Interest = EBT

Net Income – Dividends = Retained Earning

Question # 5 of 15 ( Start time: 09:52:38 PM ) Total Marks: 1

With continuous compounding at 8 percent for 20 years, what is the approximate future value of a Rs. 20,000 initial investment?

Select correct option:

Rs.52,000

Rs.93,219 (Correct)

Rs.99,061

Rs.915,240

5:53 PM


Question # 6 of 15 ( Start time: 09:54:01 PM ) Total Marks: 1

To increase a given future value, the discount rate should be adjusted ________.

Select correct option:

Upward

Downward (Correct)

First upward and then downward

None of the given options

Question # 7 of 15 ( Start time: 09:55:36 PM ) Total Marks: 1

Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation?

Select correct option:

Par value

Market value (Correct)

Intrinsic value

Face value

Question # 8 of 15 ( Start time: 09:57:06 PM ) Total Marks: 1

Which of the following refers to time value of money concept?

Select correct option:

A rupee in one’s hand at present is worth less than the rupee that one is going to receive tomorrow (Correct)

A rupee in one’s hand at present is worth more than the rupee that one is going to receive tomorrow

A rupee in one’s hand at present is worth same as the rupee that one is going to receive tomorrow

All of the given options


Question # 9 of 15 ( Start time: 09:57:59 PM ) Total Marks: 1

Which of the following is NOT true regarding an ordinary annuity?

Select correct option:

It is a series of equal cash flows

Cash flows occur for a specific time period (Correct)

Payments are made at the start of each period

It is also known as deferred annuity

Question # 10 of 15 ( Start time: 09:58:47 PM ) Total Marks: 1

Which of the following includes the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization?

Select correct option:

Financial accounting

Financial management (Correct)

Financial engineering

Financial budgeting

5:59 PM


Question # 11 of 15 ( Start time: 09:59:08 PM ) Total Marks: 1

Which of the following is FALSE about Perpetuity?

Select correct option:

It is a series of cash flows

Cash flows occur for a specific time period

Its cash flows are identical (Correct)

None of the given options

Question # 12 of 15 ( Start time: 10:00:31 PM ) Total Marks: 1

Which of the following term may be defined as incidental cash flows that arise because of the effect of new project on the running business?

Select correct option:

Sunk cost

Opportunity cost

Externalities (Correct)

Contingencies

Question # 13 of 15 ( Start time: 10:01:09 PM ) Total Marks: 1

What is the present value of Rs. 3,500,000 to be paid at the end of 50 years if the correct risk adjusted interest rate is 18%?

Select correct option:

Rs.105,000

Rs.1,500,000

Rs.3975,000

Rs. 350,000


saadkhan545: Question # 14 of 15 ( Start time: 10:02:19 PM ) Total Marks: 1

Which if the following refers to capital budgeting?

Select correct option:

Investment in long-term liabilities (Correct)

Investment in fixed assets

Investment in current assets

Investment in short-term liabilities


Question # 15 of 15 ( Start time: 10:03:16 PM ) Total Marks: 1

An annuity due is always worth ___ a comparable annuity.

Select correct option:

Less than

More than (Correct)

Equal to

Can not be found from the given information

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Question # 1 of 15 ( Start time: 10:22:47 PM ) Total Marks: 1

The statement of cash flows reports a firm's cash flows segregated into which of the following categorical order?

Select correct option:

Operating, investing, and financing

Investing, operating, and financing (Correct)

Financing, operating and investing

Financing, investing, and operating

Question # 2 of 15 ( Start time: 10:23:52 PM ) Total Marks: 1

When a bond will sell at a discount?

Select correct option:

The coupon rate is greater than the current yield and the current yield is greater than yield to maturity

The coupon rate is greater than yield to maturity

The coupon rate is less than the current yield and the current yield is greater than the yield to maturity

The coupon rate is less than the current yield and the current yield is less than yield to maturity (Correct)

Question # 3 of 15 ( Start time: 10:24:25 PM ) Total Marks: 1

If Net Present Value technique is used, what is the minimum acceptance criterion for a project?

Select correct option:

NPV<0

NPV=0

NPV>0

NPV<=0 (Correct)

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Question # 4 of 15 ( Start time: 10:25:44 PM ) Total Marks: 1

Which if the following refers to capital budgeting?

Select correct option:

Investment in long-term liabilities

Investment in fixed assets (Correct)

Investment in current assets

Investment in short-term liabilities

Question # 5 of 15 ( Start time: 10:26:13 PM ) Total Marks: 1

Which of the following is FALSE about Perpetuity?

Select correct option:

It is a series of cash flows

Cash flows occur for a specific time period

Its cash flows are identical (Correct)

None of the given options

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Question # 1 of 15 ( Start time: 10:37:35 PM ) Total Marks: 1

What are the three classes of factors that influence perception?

Select correct option:

Factors in the setting, factors in the environment and factors in the motives

Factors in the perceiver, factors in the target and factors in the situation

Factors in the character, factors in knowledge and factors in experience

Factors in the personality, factors in the character and factors in the values





Question # 2 of 15 ( Start time: 10:39:05 PM ) Total Marks: 1

What is the term used for a general impression about an individual based on a single characteristic such as intelligence, sociability, or appearance?

Select correct option:

The contrast effect

Personal bias

The halo effect (Correct)

Projection


Question # 3 of 15 ( Start time: 10:40:25 PM ) Total Marks: 1

Ability to understand what is read or heard and the relationship of words to each other is called ___________

Select correct option:

Verbal comprehension (Correct)

Non verbal comprehension

Perceptual speed

Memory




Question # 4 of 15 ( Start time: 10:41:19 PM ) Total Marks: 1

A person or group with a direct interest, involvement, or investment in organization is called ____________.

Select correct option:

Shareholder (Correct)

Stakeholder

Stockholder

Patron

Question # 5 of 15 ( Start time: 10:42:18 PM ) Total Marks: 1

If a person responds the same way over time, attribution theory states that the behavior shows:

Select correct option:

Distinctiveness

Consensus

Consistency (Correct)

Continuity



Question # 6 of 15 ( Start time: 10:43:45 PM ) Total Marks: 1

_________ focuses on the study of people in relation to their social environment.

Select correct option:

Psychology

Sociology (Correct)

Corporate strategy

Political science

Question # 7 of 15 ( Start time: 10:45:13 PM ) Total Marks: 1

Which of the following term is used to describe broad range of feelings that people experience?

Select correct option:

Mood (Correct)

Affect

Emotion

Emotional Intelligence


Question # 8 of 15 ( Start time: 10:46:41 PM ) Total Marks: 1

Hanif is dissatisfied with his job but believes that his supervisor is a good man who will do the right thing. Hanif has decided that if he just waits, conditions will improve. Henry’s approach to this problem is termed as:

Select correct option:

Exit

Voice

Loyalty

Neglect (Correct)

Question # 9 of 15 ( Start time: 10:48:11 PM ) Total Marks: 1

Job satisfaction is best described as __________.

Select correct option:

A result

A value

An attitude (Correct)

A discipline


Question # 10 of 15 ( Start time: 10:49:37 PM ) Total Marks: 1

Which of the following theory is proposed by Clayton Alderfer?

Select correct option:

Theory X and Theory Y

Hierarchy of Needs

ERG Theory (Correct)

Theory Z


Question # 11 of 15 ( Start time: 10:50:24 PM ) Total Marks: 1

Robert Katz identified three essential skills that managers need to have in order to reach their goals. What are these skills?

Select correct option:

Technical, decisional and interpersonal (Correct)

Technical, human, and conceptual

Interpersonal, informational and decisional

Conceptual, communication and networking



Question # 12 of 15 ( Start time: 10:51:47 PM ) Total Marks: 1

One of the shortcuts used to judge others involves evaluating a person based on how he/she compares to other individuals on the same characteristic. What is this shortcut called?

Select correct option:

Selective perception

The contrast effect

The halo effect (Correct)

Stereotyping

Question # 13 of 15 ( Start time: 10:52:24 PM ) Total Marks: 1

Which of the following factors make it imperative that organizations be fast and flexible?

Select correct option:

Temporariness

Corporate excess

Advances in corporate strategy

Globalization

Question # 14 of 15 ( Start time: 10:53:58 PM ) Total Marks: 1

When Job satisfaction is increased, absenteeism tends to:

Select correct option:

Increase

Decrease

Have no effect

None of the above

Question # 15 of 15 ( Start time: 10:54:48 PM ) Total Marks: 1

Difficulty in expressing emotions by an individual and understanding other's emotions is termed as:

Select correct option:

Anemia

Thalassemia

Alexithymia

Myopia