Strategic Finance 1

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 4. A highly leveraged firm

1. Employees & trade unions increase their demands 2. Is deductible from the profit 3. Shows the illusion of financial problems 4. Not necessary to have discussions regarding the sell out of assets 5. Prevents firms from investing too much 6. Discussions about the sell out of assets must be made

24.

Capital gains are taxed at .

45.

know the best about a firm's performance.

49.

When a firm invests in human resources by acquisition & training, it anticipates a

50.

Investment decisions are mainly concerned with :Liabilities Equity Assets Leverage

53.

As per Pecking order theory, which is the costliest means of funding :-

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Secured debt Unsecured debt Equity Shares Preference Shares

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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Multiple Choice Multiple Answer Question To overcome the problems of matching data the actions can be taken as follows :Correct Answer Keep extensive records of the process , Maintain detailed procedures , Keep records of assumptions as an audit trail Your Answer Keep extensive records of the process , Maintain detailed procedures , Keep records of assumptions as an audit trail Select The Blank Question In the shareholding pattern of a company, the promoter's holding includes________. Correct Answer Foreign Promoters Your Answer

Foreign Promoters

Multiple Choice Multiple Answer Question A current investment is an investment that is by nature :Correct Answer Readily realisable , Intended to be held for not more than 1year from the date on which investment is made Your Answer Readily realisable , Intended to be held for not more than 1year from the date on which investment is made True/False Question

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

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

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