Which of the following is the process of planning and managing a firm‟s long-term investments?

Related Mcqs:

1. Set of projects or set of investments usually maximize firm value is classified as_________?

   A. Optimal capital budget
   B. Minimum capital budget
   C. Maximum capital budget
   D. Greater capital budget

2. The set of projects or set of investments to maximize the firm value is classified as __________?

   A. optimal capital budget
   B. minimum capital budget
   C. maximum capital budget
   D. greater capital budget

3. In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?

   A. Increased cash
   B. Decreased cash
   C. Increased liabilities
   D. Increased equity

4. A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?

   A. 12%
   B. 25%
   C. 40%
   D. 60%

5. A firm reports total liabilities of Rs. 300,000 and owner’s equity of Rs. 500,000. What would be the total worth of the firm’s assets?

   A. Rs. 300,000
   B. Rs. 500,000
   C. Rs. 800,000
   D. Rs. 1100,000

6. Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?

   A. To maintain a high ratio of current assets to sales
   B. To maintain a low ratio of current assets to sales
   C. To less short-term debt and more long-term debt
   D. To more short-term debt and less long-term debt

7. In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?

   A. greater annual annuity method
   B. equivalent annual annuity
   C. lesser annual annuity method
   D. zero annual annuity method

8. The risk of losses on financial investments caused by an adverse price movements

   A. Systematic Risk
   B. Idiosyncratic Risk
   C. Financial Risk
   D. Business Risk

   Submitted by: Yasir Alam

9. Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?

   A. Sole-proprietorship
   B. Partnership
   C. Corporation
   D. None of the given options

10. Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?

    A. Liquidity Ratios
    B. Leverage Ratios
    C. Profitability Ratios
    D. Market Value Ratios