Classical

Advanced Questions - Section 4

16:  

Capital Budgeting is a part of

A.

Investment Decision

B.

Working Capital Management

C.

Marketing Management

D.

Capital Structure.

 
 

Option: A

Explanation :


17:  

Adjustment in Exchange Rates due to different inflation rates in two countries is known as

A.

On Price Rate

B.

Interest Rate Parity

C.

Purchasing Power Parity

D.

Exchange Power Parity

 
 

Option: C

Explanation :


18:  

Which of the following does not effect cash flows proposal?

A.

Salvage Value

B.

Depreciation Amount

C.

Tax Rate Change

D.

Method of Project Financing.

 
 

Option: D

Explanation :


19:  

Ageing schedule incorporates the relationship between

A.

Creditors and Days Outstanding

B.

Debtors and Days Outstanding

C.

Average Age of Directors

D.

Average Age of All Employees.

 
 

Option: B

Explanation :


20:  

Which of the following describes the relationship between systematic risk and return?

A.

Arbitrage Pricing Theory

B.

Capital Assets Pricing Model

C.

Harry Marketing Model

D.

Capital Market Line

 
 

Option: B

Explanation :




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