Author name: Umar Draz

educationist

Which is a long-term source of finance?

A. Trade credit
B. Bank overdraft
C. Equity shares
D. Cash sales
Correct answer is: C. Equity shares
Equity is long-term financing.

Cost of capital is:

A. Return expected by investors
B. Company profit
C. Tax rate
D. Interest rate only
Correct answer is: A. Return expected by investors
It reflects investor expectations.

Risk-return tradeoff means:

A. High risk low return
B. Low risk high return
C. High risk high return
D. No relation
Correct answer is: C. High risk high return
Higher risk gives higher return.

Which is not part of working capital?

A. Cash
B. Inventory
C. Machinery
D. Receivables
Correct answer is: C. Machinery
Machinery is fixed asset.

Financial planning involves:

A. Short-term only
B. Long-term only
C. Both short and long term
D. No planning
Correct answer is: C. Both short and long term
It covers all financial decisions.

Which ratio measures profitability?

A. Current ratio
B. Debt ratio
C. Net profit margin
D. Quick ratio
Correct answer is: C. Net profit margin
It shows earning efficiency.

Which is not a function of finance manager?

A. Investment decision
B. Financing decision
C. Production decision
D. Dividend decision
Correct answer is: C. Production decision
Production is not finance function.

Break-even point occurs when:

A. Profit is maximum
B. Revenue equals cost
C. Loss occurs
D. Fixed cost is zero
Correct answer is: B. Revenue equals cost
At BEP, no profit no loss.

Which domain includes attitudes?

A. Cognitive
B. Affective
C. Psychomotor
D. Behavioral
Correct answer is: B. Affective
Deals with feelings/values.

Which instrument measures opinions?

A. Observation
B. Test
C. Questionnaire
D. Experiment
Correct answer is: C. Questionnaire
Used for surveys.
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