Mix

traditionally avails are provided by . 14. government has made it mandatory to include in their annual reports information on customers, processes & human capital. 18. Equity includes :Deferred Payment Liabilities Development Rebate Reserve Loans from other Corporates Interest Payable 21. 1. Fiscal advantage, the interest of financing with debt 2. Financing with a high percentage of debt 3. Firms must repay debts

1. Employees & trade unions increase their demands 2. Is deductible from the profit

4. A highly leveraged firm

4. Not necessary to have discussions regarding the sell out of assets 5. Prevents firms from investing too much

3. Shows the illusion of financial problems

6. Discussions about the sell out of assets must be made 24.

Capital gains are taxed at .

50.

Investment decisions are mainly concerned with :Liabilities Equity Assets Leverage

53. As per Pecking order theory, which is the costliest means of funding :Secured debt Unsecured debt Equity Shares Preference Shares

45. 49.

know the best about a firm's performance. When a firm invests in human resources by acquisition & training, it anticipates a 1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

2

Multiple Choice Multiple Answer Question A current investment is an investment that is by nature :Correct Answer Your Answer True/False Question

Readily realisable , Intended to be held for not more than 1year from the date on which investment is made Readily realisable , Intended to be held for not more than 1year from the date on which investment is made

Correct Answer

Trade credit creates book debts which the firm is expected to collect in the near future. True

Your Answer

True

True/False Question

The chance of bankruptcy is small when the leverage of a firm is small.

Correct Answer

True

Multiple Choice Multiple Answer Question The 3 groups of participants in a firm are :Correct Answer

Suppliers of equity , Debt suppliers , Firm Managers

Your Answer

Suppliers of equity , Debt suppliers , Firm Managers

Multiple Choice Multiple Answer Question The financial managers of a company consume a great deal of their time in activities like :Correct Answer Monitoring the investment in inventories , Negotiating favourable credit terms , Administrating Accounts receivables Your Answer Monitoring the investment in inventories , Negotiating favourable credit terms , Defining a proper strategy for product promotion True/False Question Correct Answer

Appraisal value of a firm can be acquired from an independent appraisal agency. True

Multiple Choice Multiple Answer Question The following categories of personnel are taken into account to calculate the actual manpower strength :Correct Answer Full time equivalents , Temporary staff , Part time personnel Your Answer

Full time equivalents , Temporary staff , Casual workers

Multiple Choice Multiple Answer Question Accrued expenses represent :Correct Answer

Costless financing , An interest free source of financing

Your Answer

Costless financing , An interest free source of financing , Truly discretionary financing

3

LIST OF ATTEMPTED QUESTIONS AND ANSWERS (Strategic Finance_3)

4

Correct Answer Job security , Better opportunities within the firm , Higher compensation Your Answer

Job security , Better opportunities within the firm , More perks & benefits , Higher compensation Multiple Choice Single Answer Question Research into true human resources accounting began in :Correct Answer 1960`s Your Answer

1994

Select The Blank Question Segment assets are ________. Correct Answer Directly attributable to the segment True/False Question

AS 13 statement does not deal with operating or finance leases.

Correct Answer True Select The Blank Question The costs should be gathered & allocated within the organisation at the ________ structural layer. Correct Answer Lowest possible

Multiple Choice Single Answer Question Value implies that something has :Correct Answer Worth Multiple Choice Multiple Answer Question Examples of accounting methods used by firm are :Correct Answer FIFO , LIFO , Accrual Accounting Your Answer

FIFO , LIFO , Accrual Accounting

Multiple Choice Multiple Answer Question The main assumptions for stock repurchase models are as follows :Correct Answer The market is efficient , There is perfect competition in the securities market Your Answer

The market is efficient , Offers are minimum limit offers. , Investors are not very keen to maximize the value of their investment

Multiple Choice Multiple Answer Question As a general rule, an asset is :Correct Answer A good or a right that a firm owns in a determined moment , Prepayment adjustments , Capitalized expenses True/False Question It is easy to find a risk free security. 5

LIST OF ATTEMPTED QUESTIONS AND ANSWERS (Strategic Finance_4)

6

Chattel mortgage

Well suited for financial good inventories of capital goods Specifically identified by serial number or other means

Trust receipt

Well suited for financial good inventories of capital goods Specifically identified by serial number or other means

Multiple Choice Single Answer Question Acceptable audit requirements cannot be overlooked even under the pressure of :Correct Answer Timeliness & turnaround Your Answer True/False Question Correct Answer

Timeliness & turnaround

The intellectual assets of a company are often worth 3 or 4 times the tangible book value. True

Select The Blank Question ________ government has made it mandatory to include in their annual reports information on customers, processes & human capital. Correct Answer Danish (Denmark) Your Answer

Danish (Denmark)

Match The Following Question Amount involved in buy back Articles of Association Board of Directors Shares to be bought back

Correct Answer

Your Answer

Not to exceed 25 % of the total paid up capital Authorize buy back of securities Resolution permitting the buy back of shares Fully paid up

Fully paid up Authorize buy back of securities Resolution permitting the buy back of shares Not to exceed 25 % of the total paid up capital

Multiple Choice Multiple Answer Question Shareholders returns consists of 2 components :Correct Answer

Dividend , Capital gains

Your Answer

Dividend , Capital gains

Multiple Choice Multiple Answer Question A firm with a judicious mixture of debt and equity will have :Correct Answer True/False Question Correct Answer

Lowest cost of capital , High value of firm , Good market reputation According to NI Approach, decrease in leverage decreases the overall cost of capital and increases the firm's value. False

7

10.

The HHI index reflects :-

a)

Inequality & degree of concentration Transparency Disclosure through public announcement Interest of small shareholders

b) c) d) 11.

In case of direct placement of commercial papers it may be issued for maturities from the date of issue. Bw one to two yrs,More than 2 yrs,less than 6 months,bw 15 days to one year. 18. Changes in the investee`s equity includes those :-

m the

a) revaluation of fixed assets b)From foreign exchange translation differences c)From the adjustment of differences arising on amalgamation d) Investor's proportionate interest 24. Only firms with a large amount of financial slack can afford tender offers. True False 40. In the disclosures in financial statements, there are significant restrictions on :The right of ownership Realisability of investments The remittance of income & proceeds of disposal Other disclosures 44. To determine the firm's value, what is difficult to placing a value on?

Quantitative variables Qualitative factors Quantitative factors Qualitative variables

8

1. Segment revenue

1. Enterprise assets

2. Segment result 3. Segment assets 4. Segment liabilities

2. 3. 4. 5. 6.

Enterprise revenue Enterprise liabilities Cash flows Enterprise net profit or loss Liquidity

50. When the working capital is less than its peak level :52. Liquidation value is also known as

LIST OF ATTEMPTED QUESTIONS AND ANSWERS (strategic finance)

9

Question

The financial framework of a merger decision covers 3 interrelated aspects i.e. :Correct Answer Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision Your Answer Determining the firm's value , Financing techniques in mergers , Analysis of merger as a capital budgeting decision Multiple Choice Single Answer Question According to Net Income Approach, the average cost of capital declines as the leverage ratio :Correct Answer Increases Your Answer

Increases

True/False Question

A long term investment is an investment other than a current investment.

Correct Answer True Your Answer

True

True/False Question

The capital Asset pricing model describes the pricing of assets as well as derivatives. Correct Answer True Your Answer

True

Multiple Choice Multiple Answer Question Personnel services expenses is made up of:Correct Answer Personnel salaries , Cost of facilities , Training & development budgets Your Answer

Cost of facilities , Training & development budgets

Multiple Choice Multiple Answer Question Investments having no physical existence includes :Correct Answer Shares , Debentures , Bonds Your Answer

Shares , Debentures , Bonds

Select The Blank Question the commercial paper may be issued in the multiples of ________. Correct Answer 5 lakhs Your Answer

5 lakhs

Multiple Choice Single Answer Question Modigliani - Miller Theoram is based on :10

6.

The FEA Tools encompass a vast array of information & policy into :-

Many evaluations One evaluation One procedure Many procedures 7.

optimum cash balance under certainty i.e. Baumul`s model allows the cash flow to fluctuate.

True False LIST OF ATTEMPTED QUESTIONS AND ANSWERS (strategic finance-6)

11

Match The Following Question

Correct Answer

AS 4

Contingencies & events occurring after Contingencies & events occurring after the balance sheet date the balance sheet date Accounting for investments Accounting for investments

AS 13 AS 23 AS 21 Select The Blank Question

Your Answer

Accounting for investments in associates in Accounting for investments in associates in consolidated financial statements consolidated financial statements Consolidated financial statements Consolidated financial statements

Correct Answer

There is a ________ relationship between the number of employees & the use of operating supplies. Natural

True/False Question

Planning helps an acquiring firm to identify the units it should drop & it should add.

Correct Answer

True

Select The Blank Question

Non value added activities helps ________.

Correct Answer

To analyse the activities more carefully

Your Answer

To take a better decision

True/False Question

Usually only a single method is used for valuation of shares.

Correct

False

Select The Blank Question Correct Answer

In the reproduction value method of valuation, the value of assets is taken to be on the basis of ________ Replacement cost

Multiple Choice Multiple Answer Question The major conditions to be fulfilled for buyback of shares as per the legal provisions include :Correct Answer Articles of association should authorize buyback of shares , The shares which are sought to be bought back should be fully paid up , After the buy back the ratio of debt to total capital and free reserves should not be more than 2 : 1 Multiple Choice Single Answer Question The Public announcement of share buy back has to be made at least :Correct Answer

7 Days prior to the commencement of buy back

Select The Blank Question

Combination of 2 or more companies into existing company is called ________.

Correct Answer

Absorption

Select The Blank Question

________ is not a example of segment liability.

Correct Answer

Goodwill

12

17.

According to Merton Miller & Franco Modigliani, the only important determinant of a company's market value is :-

24.

Decision regarding firm's payout of dividend Retention of dividend for internal financing Its investment policy Investment opportunities available Fixed price tender offers are accompanied by an abnormal announcement period return of :2-3% 6-8% 8 - 10 % 10 - 15 %

30.

Opportunity costs and real costs decrease the market value of a firm.

True False 43.

HLL is % of subsidiary of Unilever PLC.

.75,0.5,0.25,0.516 47.

The statute governing an enterprise may provide the basis for computation of the depreciation. TRUE / FALSE

1. Line of credit

1. The cash flow ability of the borrower to pay the loan is usually of paramount importance

2. Revolving credit agreements

2. Does not constitute any legal commitments on the part of the bank

3. Transaction loan

3. The clean up period is more than 6 months

4. Unsecured loans

4. While the commitment is in force the bank must extend credit whenever the borrower wishes to borrow 5. Form of debt not backed by the pledge of specific assets

51.

6. Borrower does not have to pay a commitment fees A single organisation model serves to keep all individual initiatives to be targeted into a co-ordinated plan. True False LIST OF ATTEMPTED QUESTIONS AND ANSWERS

13

Question

The Management of the Company may enter into a negotiated purchase, which is referred to as :Correct Answer Greenfield Your Answer

Greenfield

Multiple Choice Single Answer Question The acquirer should intimate to the target company & the concerned stock exchanges as soon as its holding touches :Correct Answer 5 % of the voting capital of the target company Your Answer

5 % of the voting capital of the target company

Multiple Choice Multiple Answer Question Significant influence is the power to :Correct Answer Participate in the financial decisions , Participate in the operating policy decisions Your Answer

Participate in the financial decisions , Participate in the operating policy decisions

Multiple Choice Multiple Answer Question An investment property is an investment in land or buildings :Correct Answer Not intended to be occupied substantially for use by investing enterprise , Not intended to be in the operations of the investing enterprise Your Answer Not intended to be occupied substantially for use by investing enterprise , Not intended to be in the operations of the investing enterprise Multiple Choice Single Answer Question The following analysis is more targeted on similar activities or firms that exist in parallel within the activity model or process flow to ensure that they are being done the same best way :Correct Answer Comparative analysis Your Answer

Comparative analysis

14

15

16

17