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Finance Mcqs

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

  • (A)  Agency problem
  • (B)  Interest conflict
  • (C)  Management conflict
  • (D)  Agency cost
Submitted By :Ali Uppal


Submitted By :Ali Uppal


Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?

  • (A)  Ordinary annuity
  • (B)  Annuity due
  • (C)  Perpetuity
  • (D)  None of the given options
Submitted By :Ali Uppal


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
Submitted By :Ali Uppal


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
Submitted By :Ali Uppal


_________ 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
Submitted By :Ali Uppal


Which of the given area is NOT addressed by Business Finance?

  • (A)  Financing
  • (B)  Investing
  • (C)  Managing day today expenses
  • (D)  None of the given options
Submitted By :Ali Uppal


Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.

  • (A)  long-term; short-term
  • (B)  short-term; long-term
  • (C)  lower-coupon; higher-coupon
  • (D)  None of the given options
Submitted By :Ali Uppal


In which of the following type of annuity, cash flows occur at the beginning of each period?

  • (A)  Ordinary annuity
  • (B)  Annuity due
  • (C)  Perpetuity
  • (D)  None of the given options
Submitted By :Ali Uppal


Submitted By :Ali Uppal