The investment decision is the most important of the firm’s three major decisions, when it comes to:

Related Mcqs:

1. Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?

   A. Component cost is used
   B. Common stock value is used
   C. Cost of capital is used
   D. Asset valuation is used

2. Cost which has occurred already and not affected by decisions is classified as______________?

   A. Sunk cost
   B. Occurred cost
   C. Weighted cost
   D. Mean cost

3. Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the:

   A. Workers
   B. Subordinates
   C. Shareholders
   D. Employees

4. Process of comparing company results with other leading firms is considered as____________?

   A. Comparison
   B. Analysis
   C. Bench marking
   D. Return analysis

5. Type of financial security in which firms do not borrow money rather lease their assets is classified as____________________?

   A. Leases
   B. Preferred stocks
   C. Common stocks
   D. Corporate stocks

6. The process of comparing company results with the other leading firms is considered as ___________?

   A. comparison
   B. analysis
   C. benchmarking
   D. return analysis

7. The Eurobonds are issued by financial firms to _________?

   A. avoid taxes
   B. avoid interest hike
   C. avoid high floating rate
   D. avoid portfolio issues

8. The financial firms such as mutual fund and insurance companies are also called __________?

   A. insured financials
   B. guaranteed business
   C. credit business
   D. business financial

9. The firms that attach bonds to the stock warrants are usually_________?

   A. less discounted
   B. more risky
   C. less risky
   D. more discounted

10. An analysis of decision making of investors and managers is classified as_________?

    A. Riskier finance
    B. Behavioral finance
    C. Premium finance
    D. Buying finance