BUSINESS LAW & ETHICS

 AURORA’S PG COLLEGE(MCA)

NAMPALLY,HYDERABAD

BUSINESS LAW & ETHICS[QUESTION BANK]

I. Choose the correct answer:

1. According to section11 the following persons and incompetent

to contract

A. Minor

B. Person Of Unsound Mind

C. Person Disqualified By Law To Contract

D. All Of The Above

2. Misrepresentation IsDefined Under

A . Section 18

B. Section 15

C. Section 19

D. Under Influence

3. An Act Of False Representation Made Intentionally By One Party With A View To

Deceive The Other Party Is Termed As

Coercion

Misrepresentation

Fraud

Under Influence

4. One OfThe EssentialElements OfAValid ContractIs

A.Misrepresentation

B. Lawful Consideration

C. Coercion

D. Agreement

5. AnOffer CanBeBefore Acceptance Before It’sCommunication 

A. Revoked

B.Accepted

C.Contract

D. Agreement

6. LegalRules For LawfulConsideration Is

A. Deals withthe present Contract

B. Must BE Adequate

C. Must Move At The Desire Of The Promisor

D. Must BeIllegalAnd OpposedTo PublicPolicy

7.A Agreement Is An Agreement Which Is Not Enforceable By

Law A. Voidable

B.Void

C.Illegal

D.Legal

8.Who Among TheFollowing AreConsidered AsPersonsOfUnsound

Mind A.Idiots

B. Lunatics

C.Intoxicated Or Drunken PersonD.

AllThe Above

9. When A Contract IsBroken The Injured Parties Have One Or More Of The Following

Remedies

A.Suit For Agreement

B. Suit For Injunction

C. Suit For Rights

D. None Of The Above

10. Minor Is A Person Who Had Not Attained The AGE Of Years.

A. Twenty

B.Ninteen

C.Eighteen

D.Twenty One

11. Is ASpecialKind OfBailment

A.Pledge 

B.Agency

C.Contract

D.Agreement

12. ASeller Who HasNot BeenPaid The WholePriceOfTheGoodsSold Is KnownAs

A.Paid Seller

B. Unpaid Seller

C. YesTo Pay Seller

D.Post Paid Seller

13.A Person Who Draws The Cheque Is Knowns As

A.Drawee

B.Payee

C.Drawer

D.None

14. ThePersonTo WhomGoodsAreDelivered Under AContract ABailment

Is A.Bailer

B.Pledger

C.Seller

D.Bailee

15. IfThe Transfer Of Property Of GoodsIsToBeTaken Place At ALaterTime Is 

Termed Is Termed As

A. Agreement To Sell

B. Sale

C.Guarantee

D.Warranty

16. ThePersonWho GivesTheGuarantee IsCalled

A.Creditor

B. Surety

C.Debtor

D.Agent

17. When A Cheque BearsIn Addition Of The Name Of A Bankers Then It IsCalled As

A. General Crossing

B.Restrictive Crossing

C.Special Crossing

D.BillOfExchange

18. PromissoryNoteHave Parties _

A.Three

B.One

C .Six

D.Two

19. One Of The Essential Features Of Negotiable Instrument Is A. Easily

TransferableB.Recovery

C.Defect FreeTitleOfHolder InDueCourse

D.All The Above

20. The Person OnWhom Cheque Is Drawn Is Termed As, A.Promissor

B.Promisee

C.Payee

D.Bailor

21. Afinder oflost goodsis a

A. bailor

B. Baile

C. true owner

D. thief

22. Aspecific offer can be accepted by

A. anyperson

B. any friend of offerer

C. the person to whom it is made

D. any friend of offeree.

23. Specific performance may be ordered bythe court when

A. the contract is voidable

B. damages are an adequate remedy

C. damages are not an adequate remedy

D. the contract is uncertain.

24. In case of breach of a warranty , the buyer can

A. repudiatethe contract

B claim damages only

C. returnthe goods D. refuse topaythe 

price refuse to take delivery of the 

goods.

25. Acontingent contract is

A. void

B. voidable

C. valid

D. illegal

26. The court maygrant rescissionwhere the contract is

A. voidable at the option of the plaintiff

B. void

C. unenforceable

D. illegal

27. TheLawofContract inIndia is contained in

A. IndianContract Act 1862

B. IndianContract Act 1962

C. Indian Contract Act 1872

D. IndianContract Act 1972

28. For entering into a contract, a minor is a personwho has not completed the ageof

A.16 years

B.18 years 

C.20 years

D.21 years

29. Ǫuantum meruit means

A. a nongratuitous promise

B. an implied promise

C. as much as earned

D. as muchas is paid

30.Aminor entersinto a contract forthe purchase ofcertain necessaries in suchcase

A. he is not personally liable to pay

B. he isliable to pay

C. his estate isliable to pay

D. his guardian is liable to pay

31. An offer may lapse by

A. Revocation

B. Counter Offer

C. Rejection of offer by offeree

D. All of these

32. Ordinarily, a minor's agreement is

A.Void ab initio

B.Voidable

C.Valid

D.Unlawful

33.The threat to commit suicide amounts to

A. Coercion

B. Undue influence

C. Misrepresentation

D. Fraud

34. On the valid performance of the contractual obligations by the parties, 

the contract

A. Is discharged

B. Becomes enforceable

C. Becomes void

D. None of these

35.A contingent contract depend on the happening of the future uncertain event can be enforced 

when the event

A. Happens

B. Becomes impossible

C. Doesn't happen

D. Either of these

36.Which of the following persons are not competent to contract

A .Minors

B .Persons of unsound mind

C. Persons disqualified by law

D. All of these

37. When the consent of a party is obtained by coercion undue influence, fraud or 

misrepresentation, the contract is

A. Void

B. Voidable

C. Valid

D. llegal

39.Where the consent of a party is obtained by misrepresentation, the 

contract is A. Valid

B. Void

C. Voidable

D. Illegal

40. A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax 

Department. This agreement is -

A. Void

B. Valid

C. Voidable

D. Contingent

41.An agreement to do an illegal act ( eg: sharing the earnings ofsmuggling business) 

is

A. Valid

B. Void

C. Voidable

D. Contingent

42. Consideration may be

A. Past

B. Present

C. Future

D .All of the above

43. Consent is not said to be free when it is caused by

A. Coercion

B .Undue influence

C. Fraud

D. All of these

44. In case of illegal agreements, the collateral agreements are

A. Void

B. Valid

C. Voidable

D. Any of these

45. Sometimes, a party is entitled to claim compensation in proportion to the work done by 

him. It is possible by a suit for

A. Damages

B. Injunction

C. Quantum merit

D .None of these

46. Which of the following statement is true

A. An agreement enforceable by law is a contract

B. An agreement is an accepted proposal

C. Both (a) and (b)

D. None of these

47. As a general rule, an agreement made without consideration is

A .Void

B .Voidable

C .Valid

D. Unlawful

48. A contingent contract dependent on the non happening of a future uncertain event becomes 

void when such event

A. Happens

B. Does not become impossible

C. Does not happen

D. Both (a) and (b)

49. When offer is made to a definite person, it is known as

A. General offer

B. Cross offer

C. Counter offer

D. Special offer

50. A public company has been defined in sec

A. 3(1)(iv)

B. 3(1)(i)

C. 3(1)(iii)

D. 3(1)(ii)

FILLINTHEBLANKS

1. An Agreement May Be a Social Agreement or Legal Agreement.

2. Quantum meruit means ‘As much earned or As much as is merited.

3. An Agreement Enforceable by Law Is A contract.

4. Consent Is Said to Be Free When It Is Not Obtained Through Coercion, undue influence, misrepresentations or fraud.

5. An Offer Is a Proposal Made by One Person to Another.

6. The Assent or Agreement of The Offence to The Offer Is Termed as Acceptance.

7. All Contracts are Agreements but all Agreements need not be Contracts. 

8. Breach of contract means breaking of the obligation Which contract imposes.

9. When a person is forced by using pressure or threat to enter into a Contract it is known As Coercion.

10. A Contract without consideration is Void.

11. Caveat Emptor means ‘let the buyer beware’.

12. In Agency by rectification a person may act on behalf of another with out his 

knowledge and consent.

13. Pledge Is transfer of Bailment Of Goods as Security for the Payment of a debt or 

Performance of a Promise.

14. One of the Rights of an Agent Is Right of lien.

15. The Two Parties Involved in Contract Sales are Buyer and Seller.

16. Bailment Means a Delivery Of Goods when the Condition is Satisfied.

17. Contracts Of Indemnity and Guarantee are Essentials of a general Contract.

18. A Surety posses rights against Creditors, the principal debtor and the co-sureties.

19. Contract of sale Refers to a Contract through which the Seller transfers or Agrees to transfer the Property in Goods to the Buyer for a Price.

20. Negotiable instrument is a method of Transferring a Debt from one person to another.

21. An agreement with or by a minor is void.

22. Offer + Acceptance= Agreement.

23. A person making proposal is called Promisor.

24. In Fraud there is an intention to deceive.

25. The person accepting to proposal is called promise.

26. Both the parties have yet to perform their mutual promises is known as Executory Contract.

27. Consent is said to be free when it is not caused by Undue influence.

28. One of the parties has already performed his part of the contract is known as Executed contract.

29. A person who draws the cheque is known as drawer.

30. The person on whom cheque is drawn is termed as Payee.

31. Consideration must move at desire of the Promiser.

32. In fraud there is an intention to deceive.

33. Sales creates right in rem.

34. Public company means a company which is not a private company.

35. Age limit for making contract is 18 years.

36. The place of national commission shall be in Delhi.

37. A Company is a separate legal entity.

38. Right of lien available to the unpaid seller is Particular lien 39.

39. Just-in-person means Personal rights.

40. The sales of goods act Implies to Movable property.

41. Promissory note is un conditional promise to pay.

42. A Contract with consideration is valid.

43. A consideration is a technical term used in the terms of “Quid pro quo”.

44. A Foreign company needs to be incorporated outside India.

45. Full form IDR is Indian Depository Receipts.

46. There are 29 accounting standards.

47. The company act 2013 has Superseded companies act 1956.

48. Promoter stands in a fiduciary relation to the company he floats.

49. An agreement forceable by law is valid.

50. A stipulation essential to the contract is called condition.

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BUSINESS RESEARCH METHOD

 AURORA’S P.G. COLLEGE (MCA)

 Nampally, Hyderabad 

QUESTION BANK I INTERNAL EXAM 2024

 SUB: BUSINESS RESEARCH

1) Which type of research identify cause and effect relationship among the variables [CO1,BT3 ]

 a) Exploratory research b)Causal Research c)Descriptive research d) Experimental research 

2) A research project might have __________ types of objectives [CO1,BT4 ] 

a) Causal b) Descriptive c) Exploratory d) All the above

3) The framework for a study that guides the collection and analysis of data is called a ____ [CO1,BT3

 a) Research Design b) Sampling c) Simulation d) Panel 

4) Business research information is used to take _______ term decisions [CO1,BT4 ] 

a) Long b) Medium c) Short d) All the above 

5) Under ________ type of hypothesis the researcher builds or develops an imaginary relationship between two independent variables [CO2,BT3 ] 

a) Question hypothesis b) directional hypothesis c) declaration statement hypothesis d) non- directional hypothesis 

6.Basic research is also called as ________________[CO2,BT3] 

a) Fundamental research b) Pure research c) Both (a) and(b) d) Applied research 

7) Case studies method is also known as [ [CO2,BT3 ] 

a) Insight simulating examples method b) Expert surveys method c) secondary data analysis method 

d) none of the above 

8) The objective of __________ research is to gather preliminary information that will help define the problem and suggest hypothesis

a) Descriptive b) Exploratory c) Causal d) All the above 

9)In a ____ design one or more factors are manipulated under controlled conditions. [CO1,BT3] 

a) Experiment b)Design c) System d) Research 

10) Which of the following information system concentrates on the storage and flow of information to marketing managers. [CO1,BT3 ] 

a) FMIS b) MKIS c)HRIS d) None of the Above 

11)If the researcher is concerned with finding out who, what where, when, or how much, then the study is[[CO2,BT1] 

a) Exploratory b) Causal c) Descriptive d) Empirical 

12)Test Marketing is an example of _______________[] 

a) Mail Survey b)Focus Group c) Situational Analysis d) Experiment 

13) A Study conducted on a sample at two different points is[ [CO2,BT3] 

a)Field study b) longitudinal study c) Diagnostics study d) All of the above. 

14)In which type of hypothesis, hypothesis is represented in a simple question form[ [CO2,BT3]

 a) question hypothesis b) Directional hypothesis c) Non - directional hypothesis d) None of the above

 15)Which of the following is a component of an organization’s marketing information system? [ [CO1,BT2] 

a) Marketing Intelligence b)Focus groups c) Strategy d) Concept 

16) Independent variable(s) that is(are) not related to the purpose of the study but may affect the dependent variable is known as ________________ variable.[ [CO2,BT2] 

a) Experimental b) Extraneous c) Controlled d) Randomised 

17)Which of the following term refers to the situation where two independent variables have an effect when they are in combination?[ [CO2,BT3] 

a) Dependency b) Confounding c)Factorisation d) Interaction 

18) Internal records are an important source of information. Which of the following is not considered as internal records?[[CO1,BT6 ] 

a) Accounting records b) Competitor information. c) Customer Service records. d) Marketing and sales records 

19) Which of the following research is helpful in gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.?[[CO2,BT5 ] 

a) Observational b)Experimental c) Survey d) Mechanical 

20) Two or more questions involved in single question format is known as _______[[CO2,BT4 ] 

a) Double - barreled b) open- ended c) opinion oriented d)Dictomous 

21) The objective of___________ is to select that part which is representative of the entire population [[CO2,BT3 ] 

a) Sampling b)Hypothesis c)Research d) None of the above 

22) ___________scales are carefully constructed sets of rating scales designed to measure one or more aspects of an individual’s attitude toward some object [ c ] 

a) Thurstone’s b) Likert’s c) Attitude d) Primary 

23) Personal interviews conducted in shopping malls are known as _____ [CO2,BT5 ] 

a) Brief interviews b) Mall intercept interviews c) both a & b d) None of the above 

24) _____________ questions allow respondents to answer questions in their own words. [CO1,BT6 ]

 a) Closed-parameter b) Open-end c). Closed-end d) Conditioned response 

25. Which of the following common survey methods is rated “poor” in terms of speed of data collection? [CO2,BT4 ] 

a) Mail b) Telephone c) Personal d) Online 

26) Distance travelled is a good example of a(n)__________ scale [CO1,BT2 ] 

a) Nominal b) ordinal c) Interval d) Ratio 

27) One researcher classified the participants as "good," "average," or "poor" readers. This researcher used a(n) __________ scale [CO2,BT4 ] 

a) Nominal b) Ordinal c) Interval d) Ratio 

28) ________ Research can be used to obtain information that people are unwilling or unable to provide. [CO2,BT5 ] 

a) Observational b) Systematical c) Situational d) Operational 

29)When bipolar adjectives are used at the end points of the scales, these are termed as _____ scales [CO2,BT5 ] 

a)Likert’s b) Semantic Differential c) Staple d) Guttman’s 

30) In case of __________ validity, an attitude scale on one variable can be used to estimate scores on another variable. [ [CO2,BT3 ] 

a) Concurrent b) Content c) Construct d) Criterion 

31)The nominal scale of measurement classifies objects into ________________categories.[ ][ CO1,BT2)] 

a)Conditional b) Mutually Exclusive c)Subjective d) Contingency 

32) _________refers to identifying and summarizing the research studies related to a topic[ CO1, BT2]

 a) Review of literature b) Conditional c)Subjective d) Contingency 

33) The number of people to be surveyed can be determined by ____________ Size.[ CO2,BT3 ] 

a) Mutually exclusive b) Sample c) subjective d) Construct 

34)In a post office the mail boxes are numbered from 1 to 5000. these numbers represent _______ scale of data [CO1,BT2 ] 

a) Nominal b) Ratio c) Interval d) none of the above 

34)The assignment of numbers to observations or characteristics of objects, persons, states or events according to rules is known as __________ [ CO1,BT2 ] 

a) Measurement b) Ratio c) Interval d) none of the above 

35) Overall grade in a semester represents ___________ scale of measurement [CO1,BT 2]

a) Ordinal b) Nominal c) Ratio d) Interval 

36)__________ data are collected specifically for a particular research problem.[ CO1,BT3 ] 

a) Secondary b) Primary c) Ordinal d) None of these 

37) A sample is a ________ sample if each unit in the population is given some chance of being selected.[ CO2,BT4 ] 

a) Random b) Primary c) Stratified d) None of these 

38)________________tests the potential effects of various marketing factors with a software program.[ CO2,BT2 ] 

a)Simulation b) MIS c) Data sources d) none of the above 

39) _____________type of measurement scale involves the use of numbers to represent equal distances from a known zero point[CO2,BT3] 

a) Ratio b) ordinal c) Nominal d) Interval 

40_______________designs allow us to study both individual and interactive effects of the independent variables on the dependent. [CO1,BT2] 

a)Factorial b) Experimental c) Randomized d)control 

41) The research in which new ideas and findings are developed by analysing the existing theory and explanations , is referred to as ______________[CO1,BT3] 

a) Exploratory Research b) causal research c) theoretical d) Empathical 

42) The group that does not receive the experimental treatment condition is known as _______________ group. [CO1,BT3] 

( Control) 

43) A Decision Support System takes internal records and external marketing information housed in the MIS and adds data analysis modeling into an __________________system.[CO2,BT3] 

a)Integrated b) real c) Experimental d) control 

44) The number of times each experimental condition is observed in a factorial design is known as_________________ [CO1,BT3] 

A) (Replication) b) Randomized c) Factorial d) Experimental 

44) In Business research, the _____________ phase is generally the most expensive and most subject to error[CO1,BT3] 

A) Data Collection b)data sources c)data application d) data analysis 

46) In experimental research, the researcher manipulates at least one _______________variable.[CO2,BT3] 

a)Independent b) casual c) descriptive d) dependent 

47) A variable that varies along with the independent variable is called a_________________ variable. [CO1,BT3] 

A) ( Confounding) b) Independent c)Integrated d)dependent 

48) _________refers to identifying and summarizing the research studies related to a topics[CO1,BT3] 

a) Independent b)Review of literature c) Integrated d) Data collection 

49) Causal designs require the researcher to design and conduct __________. [CO2,BT3]

 a)Experiments b) Independent c) Replication d) Control 

50)The framework or plan for a study that guides the collection and analysis of data is called a ____ [CO1,BT3] 

a) Research Design b) Hypotheses c) Confounding d) Data collection

II. Fill in the Blanks: 

1.The first step in the marketing research process is to define the _____________ and research objectives. ( Problem) [CO1,BT3] 

2.The basic principles of design of experiments are randomization, replication and ________ 

(Local Control) [CO1,BT3] 

3)The type of research used to test hypotheses about cause-and-effect relationships is called ________ Research. ( Causal )[CO2,BT3] 

1) Causal designs require the researcher to design and conduct __________. (Experiments)[CO2,BT3]

 2) The framework or plan for a study that guides the collection and analysis of data is called a ____ (Research Design) [CO1,BT5] 

3) A set of procedures and methods designed to generate, analyze, disseminate, and store anticipated marketing decision information on a regular basis is known as ____________.

 (Marketing Information System )[CO1,BT2] 

4) A completely randomized design is an ___________ design where experimental units are randomly assigned to the treatments. ( Experimental) [CO2,BT5] 

5) The type of research used to describe things such as the market potential for a product is called_______ research (Descriptive)[CO2,BT3] 

6) The selected group of homogeneous respondents is called as___________ (Purposive sampling)[CO2,BT3] 

7) In an _______________ the researcher attempts to control and / or manipulate the variable in the study. ( Experiment) [CO2,BT5] 

8) ________ is a mini version of full scale study.(Pilot Study)[CO1,BT2] 

9) _______________designs allow us to study both individual and interactive effects of the independent variables on the dependent. (Factorial)[CO2,BT4] 

10) The research in which new ideas and findings are developed by analysing the existing theory and explanations , is referred to as ______________(Exploratory Research)[CO1,BT3] 

11)The group that does not receive the experimental treatment condition is known as _______________ group. ( Control)[CO1,BT5] 

12)A Decision Support System takes internal records and external marketing information housed in the MIS and adds data analysis modeling into an __________________system.( Integrated)[CO2,BT5] 

13) The number of times each experimental condition is observed in a factorial design is known as_________________ (Replication)[CO2,BT3] 

14)In Business research, the _____________ phase is generally the most expensive and most subject to error.( Data Collection)[CO2,BT2] 

15) In experimental research, the researcher manipulates at least one _______________variable. (Independent)[CO1,BT3] 

16)A variable that varies along with the independent variable is called a_________________ variable. ( Confounding)[CO2,BT3] 

17)_________refers to identifying and summarizing the research studies related to a topic

(Review of literature)[CO2,BT3] 

21) The number of people to be surveyed can be determined by ____________ Size.(Sample)[CO2,BT3] 

22)In a post office the mail boxes are numbered from 1 to 5000. these numbers represent _______ scale of data ( Nominal )[CO2,BT4] 

23)The assignment of numbers to observations or characteristics of objects, persons, states or events according to rules is known as __________ (Measurement)[CO1,BT3] 

24) Overall grade in a semester represents ___________ scale of measurement (Ordinal)[CO2,BT3] 

25)______________________consists of a set of questions presented to a respondent for his or her answers ( Questionnaire)[CO1,BT3] 

26)__________ data are collected specifically for a particular research problem.(Primary)[CO2,BT3]

 27) A sample is a ________ sample if each unit in the population is given some chance of being selected.( Random)[CO2,BT3] 

28)________________tests the potential effects of various marketing factors with a software program.(Simulation )[CO2,BT3] 

29) _____________type of measurement scale involves the use of numbers to represent equal distances from a known zero point ( Ratio)[CO2,BT3] 

30)___________ refers to the procedure by which numbers or scores assigned to the various degrees of opinion, attitude and other concepts. ( Scaling) [CO2,BT3] 

31) -------------- type of research identify cause and effect relationship among the variables Causal Research [CO2,BT3] 

32) A research project might have __________ type of objectives for basic knowledge Exploratory [ CO2,BT5 ] 

33)The framework for a study that guides the collection and analysis of data is called a ____ Research Design[CO2,BT3] 

34)Business research information is used to take decisions [CO1,BT3 ] 

35) Under ________ type of hypothesis the researcher builds or develops an imaginary relationship between two independent variables Question hypothesis [CO2,BT2] 

36) Basic research is also called as ________________Fundamental research [CO1,BT3] 

37) Case studies method is also known as secondary data analysis method [CO2,BT3 ] 

38) The objective of __________ research is to gather preliminary information that will help define the problem and suggest hypothesis Exploratory[CO2,BT3] 

39) In a ____ design one or more factors are manipulated under controlled conditions. Experiment[CO2,BT3 

40) -------------- information system concentrates on the storage and flow of information to marketing managers. MKIS [CO2,BT3] 

41)If the researcher is concerned with finding out who, what where, when, or how much, then the study is ____________Descriptive [CO2,BT3] 

42)Test Marketing is an example of ______________ Experiment[CO2,BT3] 

43) A Study conducted on a sample at two different points is longitudinal study [CO2,BT3] 

45)----------------------type of hypothesis, hypothesis is represented in a simple question form Directional hypothesis [CO2,BT2] 

46)------------------------is a component of an organization’s marketing information system Marketing Intelligence[CO2,BT3] 

47) Independent variable(s) that is(are) not related to the purpose of the study but may affect the dependent variable is known as _________ Extraneous[CO1,BT5] 

48)--------------------- term refers to the situation where two independent variables have an effect when they are in combination Interaction[ CO1,BT6 ] 

49) Internal records are an important source of information. Which of the following is not considered as internal records________________ Competitor information.[CO2,BT3] . 

50) Two or more questions involved in single question format is known as _______[[CO2,BT4 ] Dichotomous

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Financial Management

 AURORA’S PG COLLEGE ( MCA) 

Financial Management

Multiple choice questions:

1. A key idea underpinning modern financial management is that the primary objective of a business is ________ maximization (Co1, BT1) ( ) 

a)Sales b)Profit c)Shareholder wealth d)Shareholder 

2) Financial management has been referred to as the economics of ________ and risk (Co1, BT1) ( ) 

a) returns b)business c)money d) none 

3) Profit maximization, as a business objective, fails to take account of _____ (Co1, BT1) ( ) 

a) taxation b)risk c)the short term d) costs 

4) __________ is concerned with financing and investment activities of the business (Co1, BT1) 

a) Control b) Budgeting c) Finance d) none 

5) The appropriate objective of an enterprise is (Co1, BT1) ( ) 

a) Maximization of sales b) Maximization of wealth c) Maximization of profits d) none 

6) Formula for compounded value of sum is (CO1,2, BT3) ( ) 

a)P(1+i)n b) P(1-i)n c) M(1+i)n d) none 

7)The time value of money in hand today is______ than money receivable in future (CO1,2, BT3) ( )

 a) same b) more c) less d) none of the above 

8) For a finance manager which is most important (CO1,2, BT3) ( ) 

a)liquidity b) profitability c) both d) none

9)Profit maximization is made when (CO1,2, BT3) ( ) 

a)marginal revenue is < marginal cost b) marginal revenue is > marginal cost c) marginal revenue is= marginal cost d) none 

10) Financial management is mainly concerned with (CO1,2, BT3) ( ) 

a)efficient management of business b) providing funds c)acquisition and efficient utilization of financial resources d) none 

11) Traditionally, the role of finance manager was restricted to (CO1,2, BT3) ( ) 

a) efficient management of business b) acquisition of funds c) both d) none

12) _________ is the fixed sum received or paid at regular intervals, at the end of each period (CO1,2, BT3) 

a) annuity b) present value c) cash flows d) all of the above ( ) 

13)Finance is the application of a series of economics principle to maximize the ________ . (CO1,2, BT3) 

a)wealth b)shareholders c)profitability d)accountability ( ) 

14)Risk is a chance of _________ loss. (CO1,2, BT3) 

a)human loss b)income loss c)expenditure loss d)financial loss ( ) 

15)The process of determining present value of a future cash flows is called ______ (CO1,2, BT2) a)discounting b)arbitrage c)opportunity costs d)time value ( ) 

16)Financial decisions involves (CO 2, BT3) ( ) 

a) Investment, financing and dividend decisions b) Investment, financing and sales decisions c) Financing, dividend and cash decisions d) All the above 

17) Identify the Time-adjusted methods or discounted methods from the following (CO1,BT2) ( )

 a) NPV method b) IRR method c) ARR method d) a&b 

18) Identify the Traditional or Non-Discounting Methods from the following (CO1,2, BT3) 

a) Pay-back Period method b) IRR method c) ARR d) a & c 

19) A Project Costs Rs. 1,00,000 and yields an annual cash inflows of Rs.20,000 for 8 years. What is the Pay back period. (CO1, BT4) ( ) 

a) 6 years b) 4 years c) 5years d) 5.5 years 

20) From the following method is based on accounting concept of profits. (CO1,2, BT3) ( ) 

a) Pay back period method b) profitability index method c) ARR d) IRR 

21) What is Decisions Rule according to NPV Method? (CO3, BT4) ( ) 

a) If NPV is Positive –Accept a project b) if NPV is Negative –Reject a project c) if NPV is equal to Zero- Reject a project d) a& b 

22) According to IRR (CO3, BT4) ( ) 

a) if IRR > Ko – Accept a project b) if IRR=Ko – Reject a Project c) if Ko> IRR- Reject a Project

 d) a & c 

23) Under ARR , amongst mutually exclusive projects, which project should be selected? (CO1,2, BT3) ( ) 

a) A project with higher ARR b) A project with lower ARR c)both d) none 

24)Which of the following is a method for accounting for risk in capital budgeting? (CO1, BT2) ( ) 

a) decision tree analysis b) sensitivity analysis c) probability technique d) all of the above 

25)The rate of discount at which the PV of Cash inflows is equal to PV of Cash outflows is called (CO1, BT1) 

a)IRR b)discounted rate of return c)trial and error method d) all of the above ( ) 

26)The concept of cost of capital is useful in (CO1, BT1) ( )

 a) capital budgeting b)capital structure decision c)both d)none 

27)When interest is compounded on half yearly basis, interest works out than the interest calculated on yearly basis is (CO1, BT2) ( )

 a) less b) more c)) same d) none

28)Profitability index is one of the following methods (Co3, BT2) ( ) 

a)traditional methods b) DCF methods c) both d) none 

29) Total assets-current liabilities = ___ (CO2, BT3) ( ) 

(a)capital structure (b)EBIT (c)EPS (d)operating leverage 

30) _________ plays a vital role in evaluation of a project. (CO2, BT1) ( ) 

(a)explanation (b)diversification (c)analysis (d)investment 

31) Retained earnings is _______ finance (CO1,2, BT3) ( ) 

a)internal b) external c) both d) none 

32) The interest paid to the debenture holder are calculated before (CO1,2, BT1,3) ( ) 

a) after taxes b) before taxes c) after pref divided d) none of the above 

33)The process of utilization the retained earnings for development of the company is known as (CO1, BT2,3) 

a)deprecation b)capitalization c)ploughing back of profits d) none ( ) 

34)WACC is also known as (CO1, BT3) ( ) 

a)overall cost of capital b) marginal cost of capital c) average cost of capital d) all of the above 

35) IRR method is also known as _________ . (CO2, BT1,3) ( ) 

(a)NPV (b)PBP (c)ROI (d)trial &error method 

36) Decision tree is a ________ representation. (CO2, BT1,3) ( ) 

(a)innovative (b)administrative (c)probability (d)pictorial 

37) _______ is long term decision. (CO1,2, BT1,3) ( ) 

(a)capital budgeting (b)ARR (c)IRR (d)PBP 

38) EPS stands for ( )

 a)earnings per share (b)equity per share (c)equity per structure (d)earnings per structure 

39) RADR is the _______ rate (CO1,2, BT3) 

(a)discounting (b)arbitrage (c)accounting (d)ROI 

40) The cost of capital comprises of _________ components. (CO3, BT1,3) ( ) 

(a)three (b)two (c)one (d)four 

41) ________ costs are technically referred to as implicit costs. (CO1,2, BT3) ( ) 

(a)opportunity (b)variable (c)fixed (d)none of the above 

42) The additional costs incurred to obtain additional funds? (Co2, BT2) ( ) 

(a)specific costs (b)variable costs (c)fixed costs (d)marginal costs 

43) Existence of _________ market is one of the assumptions of CAPM. (CO1, BT2) ( ) 

(a)perfect capital (b)imperfect capital (c)pure competition (d)monopolistic 

44) The rate at which investors discount the expected dividend over a future period to value stock? (CO1,2, BT3) 

(a)cost of equity (b)cost of capital (c)equity capital (d)preference capita ( ) 

45)Agency costs in an economic concept concerned the cost to a ____________ (CO1,, BT1) 

a)wealth maximization b)annuity c)arthimetic d)principal ( ) 

46)Wealth maximization is also known as _________ maximization. (CO1, BT2) 

a)value b)risk c)return d)time value ( ) 

47)Traditional concept of finance was limited to acquisition of ________ (CO2, BT2) 

a)funds b)wealth c)profit d)all of the above ( ) 

48)________ is primary motivating force for any economic activity. (CO1, BT1) 

(a)profit (b)risk (c)return (d)all of the above 

49)Job of _________ manager is confined for raising and effective utilization of funds. (CO1,BT1) ( )

 a)manager b)production c)human resource d)finance 

50)__________ of a company refers to the combination of all long term capital resources (CO2, 

a)working capital b)share capital c) capital structure d) none  

Fill in the blanks: 

1)_________is one of the most important functions of business management.(financing) (CO1, BT1)

2)Present value is calculated with_____________ formula (A/(1+i)n) (CO1, BT3) 

3)Future value is calculated with ___________ formula (A(1+i)n) (CO1, BT3) 

4)Risk and Return constitutes __________ of the firm(value) (CO1, BT1) 

5)The higher the risk ,_________ will be the return(high) (CO1, BT2) 

6)EBIT means__________ (earnings before interest and tax) (CO1, BT3) 

7)The finance function provides the ________ required by the business (funds) (CO1, BT3) 

8)Profit maximization ignores ____________.(time value of money) (CO1, BT1) 

9)Maximization of _________ is the main goal of financial management.( shareholder wealth) (CO2, BT2) 

10) ________ is a conflict of interest between agent and the owner.(agency conflict) (CO1, BT3)

 11)Ignoring time value of money is one of the limitations of _____ maximization of objective.(profit) (CO1, BT1) 

12)Scope of business finance is wider than the scope of ___________ finance.(corporate) (CO1, BT3)

 13) _______ finance deals the company form of organization.(corporate) (CO1, BT3) 

14)profit and _______ maximization are the goals of financial management.(wealth) 

15)Equity shareholders expected return is equal to risk free rate plus ____________ .(risk premium) (CO1, BT2) 

16)_____________ is the formula used for PBP method for uneven cashflows. (cash outlay /annual cash inflow) (CO1,2, BT2) 

17)Capital Budgeting is also known as ___________________ and _____________ (investment decision process, capital expenditure decisions) (CO1, BT3) 

18)The simplest capital budgeting technique is _________________________(NPV) (CO2, BT1)

 19)_________ Method take into account the earnings over the entire life of the project.(ARR) (CO2, BT3) 

20)__________Method takes into consideration the time value of money.(Discounted cashflow) (CO1, BT1,3) 

21)CAPM__________________(capital asset pricing model) (CO1, BT3) 

22)Cost of capital is also called_______________________.(min rate of return) (CO3, BT3)

 23)__________ is the minimum rate of return expected by its investors.(cost of capital) (CO3, BT3)

 24)______________is a combination of capital budgeting decision and working capital decision (Investment Decision) (CO1,3, BT2) 

25)Discounting technique is also known as________________ (compounding technique) (CO1, BT2)

 26)RADR stands for _________(risk adjusted discount rate) (CO2, BT1) 

27)Joint probability is also known as ____________(conditional) (CO2, BT3) 

28)_____________ refers to a situation where due to the shortage of capital, choice of projects is made on the basis of NPV(capital rationing) (CO1,2, BT3) 

29)__________ is the formula used for IRR (IRR= r- PVo−PVlr / PVlr−PV hr * Δ r ) (CO1, BT5)

 30)_____________is the formula used for ARR. ( average income after taxes/average investment*100) (CO1, BT2) 

31)Social responsibility means taking decisions beyond the ______ activity.(economic) (CO1, BT3)

 32)CF stands for _____________________ .(cash flows) (CO1, BT2) 

33) Aim of ________ is concerned with acquisitions , financing and management of assets with some over all goal in mind.(Financial Management) (CO1, BT1) 

34)The acceptance of one project will exclude the acceptance of the other projects and such projects are known as____________(mutually exclusive projects) (CO2, BT2) 

35)Capital budgeting is necessary for______________ situations (expansion, replacement, diversification and R&D) (CO2, BT2) 

36) Profitability index technique is also known as ___________ .(benefit cost ratio) (CO2, BT3) 

37) Modern technique are also called as ___________ (discounted cash flow techniques) (CO1, BT2)

 38) Investment decisions, financing decision , dividend decision are the functions of ______ (Finance) (CO1, BT1) 

39) The risk and return determines_____of the firm (Value) (CO1, Bt2) 

40) ___________ shares can be redeemed during the life time of the company(redeemable Preference shares) (CO2,3, BT3) 

41)______________ is a document issued by a company as an evidence of debt due from the company with or without a charge on the assets(debenture) (CO2, BT2) 

42)_________accounts are spontaneous source of financing, since they are self generating eg:wages (accrual or outstanding) (CO2, BT2) 

43)A combination of debt & equity that leads to maximum value of the firm is known as ____________ (optimum capital structure) (CO1, BT2) 

44)If the firm raises capital through debt and equity ,it is the ________ firm (levered firm) (CO1, BT3) 

45)Cost of capital is the _________ required rate of return expected by investors.(minimum) (CO1, BT2) 

45)Cost of capital is the measurement sacrifice made by ______ in order to capital formulation.(investor) (CO1, BT2) 

46)According to __________ cost of capital is the minimum required rate of earnings or the cut off rate of capital expenditure.(Solomon Ezra) (CO2, BT2) 

47)An average of the cost of each source of funds employed by the firm for capital formation is called as __________________ .(overall cost of capital) (CO1, BT2) 

48)Cost of capital is not useful in capital budgeting if a firm is depended on ________ methods.(traditional) (CO1, BT2) 

49) ___________ is the additional cost incurred to obtain additional funds required by a firm.

(marginal costs) (CO1, BT1) 

50)_____________ is the costs associated with particular component at capital structure.(specific costs) (CO1, BT2)

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