Bachelor of Management Studies (B.M.S.) SEM VI 2020 21 2020-21 Sample MCQs SFM Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q2 Dividend is payable to
   • a) Shareholder
   • b) Stakeholder
   • c)Manager
   • d) Employee 3.Dividend which is declared before declaration of final dividend is called as
   • a) Final dividend
   • b) Interims dividend
   • c)Temporary dividend
   • d)Permanent dividend 4 ----------------------- Dividend policy does not affect the market value of the company
   • a) Walter
   • b) MM
   • c) Gordon
   • d) Pecker
2. Q5 XBRL stands for--------------------------- Business Reporting Language
   • a) Extra
   • b) Extensible
   • c)Excursive
   • d) Exclusive 6.Dividend is paid in
   • a) Cash
   • b) Kind
   • c) Shares
   • d)Right issue a firm has ke <r, the Walter,s model suggests for 8.Company does not pay regular dividend to the shareholders is called
   • c) No dividend
   • d) Irregular dividend 9.Relevance theory of dividend is supported by
   • a) Walter
   • b) MM
   • c) Gordon
   • d) Pecker 10.------------------------ dividends is by far the most common of the dividend types used
   • a) Cash dividend
   • b) Stock dividend
   • c) Scrip dividend
   • d) Liquidating dividend 11.Ultimate objective of Financial Manager is
   • a) Wealth Maximization
   • b) Profit Maximization
   • c) Survival 12.Relationship between dividend per share and earning per share is known as
   • a) Dividend payout
   • b) Dividend yield 13.XBRL can do
   • a) Calculation & Verification
   • b) Solution to marketing problem
   • c) Investigation
   • d) Solution to HR problems irrelevance argument of MM Model is based on
   • a) Issue of debentures
   • b) Issue of bonus shares
   • d)Hedging 15.Decision making is the main function of
   • a) Management
   • b) Junior Executive
   • c) Senior Executive
   • d) None of the above
3. Q16 Ploughing back of profit means
   • a) Declaration of dividend
   • b) Retaining profits
   • d) Building Reserve
4. Q18 The policy in which less dividend is paid is EPS of the firm is Rs.10 and retention is 0%; the dividend payout would 20.XBRL is used for reporting standard
   • a) Business
   • b) Personal
   • c)Individual
   • d)Trust
5. Q21 are the reporting area specific hierarchical dictionaries used by the XBRL
   • a) Electronic
   • b) Formulas
   • d)Tables 22.XBRL allows the creation, publication and exchange of entire statements
   • a) Unethical Information
   • b) Business Secrets
   • c)Bank details
   • d)Financial 23.XBRL software can the data
   • a) Add
   • b) Delete
   • c) Validate
   • d)Invalidate 24.Walter’s Model suggest of 100% DP Ratio when in hand” argument is given by
   • a) Walter’s Model
   • b) Gordon’s Model
   • c) MM Model
   • d)Residual theory
6. Q26 stresses on investors preference for current dividend than higher future capital
   • a)Walter’s Model
   • b)Gordon’s Model
   • c)MM Model
   • d)Residual theory 27 MM Model of dividend irrelevance uses arbitrage between
   • a) Dividend and bonus
   • b) Dividend and capital issue
   • c) Profit and investment
   • d)Income and expenses 28 Gordon’s Model of dividend relevance is same as
   • a) No-growth model of equity valuation
   • b) Constant growth model of equity valuation
   • d)Inverse of price earning ratio
   • a) Dividend is paid as % of EPS
   • b) Dividend is paid as a constant amount
   • c)Dividend is paid after retaining profit for reinvestment
   • d)Dividend is paid on net profit after tax
7. Q30 XBRL India is formed as one of the following
   • a) Registered Company
   • b) Government Corporation
   • c) Trust
   • d) Partnership with XBRL, International
8. Q31 Earning per share remains constant is the assumption of model
   • a) Walter’s Model
   • b) Gordon’s Model
   • c) MM Model
   • d)Residual theory 32.Capital budgeting is related to
   • b) Short term assets
   • c)Fixed assets
   • d) None of the above 33 .------------------1s the act of placing restrictions on the amount of new investments or projects undertaken by a company
   • a) Capital rationing
   • b) Capital budgeting
   • c) Cost of capital
   • d) Leverage 34-------------------is the planning process used to determine whether an organisations long
   • a) Capital rationing
   • b) Capital budgeting
   • c) Cost of capital
   • d) Leverage 35 .-----------------------is a schematic representation of several decisions followed by different chances of the occurrence
   • a) Decision tree
   • b) Sensitivity analysis
   • c) Probability technique
   • d) Capital rationing 36.Decision involves purchase of Fixed Assets are also termed as
   • a) Capital rationing
   • b) Capital budgeting
   • c) Cost of capital
   • d) Capital Restructuring 37.Under standard deviation method dispersion of cash flow indicates
   • a) The degree of risk
   • b) The degree of certainty
   • c) The degree of uncertainty
   • d) No risk 38.Decision tree is
   • a) Tree with branches
   • b) Pictorial representation in a tree form
   • c) Tree with leaves
   • d) Tree
9. Q39 NPV technique is based on
   • a) Discounting procedure
   • b) Compounding procedure
   • c) Averaging procedure
   • d) Normal procedure 40 If the risk-free interest is 15% and risk premium is 10% the RADR would be gives in accurate results it it is
   • a) Subjective
   • b) Objective
   • c) Adjective
   • d) Normal
10. Q42 methods focus the maximization of wealth of shareholders
    • a) Profitability Index
    • b) Payback period
    • c) Internal rate of return
    • d) Accounting rate of return case of Mutually Exclusive
    • a) Only the best project is selected
    • b) All project with positive NPV is selected
    • c) Even negative NPV project may be selected
    • d) At least two proposals are selected
11. Q44 Profitability Index of a project is the ratio of present value of inflows to
    • (a) Initial cost
    • (b) PV of Outflows
    • (d) Total Outflows
12. Q45 Is the rate of return that a project generates
    • c)PI 46.Profitability index method is an extension of
    • (b) Internal rate of return
    • (c) Payback period
    • (d) Accounting rate of return
13. Q47 method state the return from a project in percentage form
    • (c) Internal rate of return 48 The Project is not acceptable 49 In IRR Method, the cash inflows from the project are assumed to be reinvested at rate
    • (c) Cost of Capital
    • (d) Rate of Interest
14. Q50 If IRR of a project is equal to opportunity cost of capital than
    • (a) Project should be repeated
    • (b) NPV will be zero
    • (c) Project has no cash flows
    • (d) NPV will be positive
15. Q51 is likely to increase the NPV of a Project
    • (a) Increase in cost of capital
    • (b) Decrease in Working capital
    • (d) Decreasing the net revenues
16. Q52 Accounting Rate of Return is based on
    • (d) Life of the Project
17. Q53 variable is not known as Internal rate of return
    • b) Discount rates
    • c)Terminal Inflows
    • d)Life of the project
18. Q54 Payback period technique is based on
    • a) All cash flows
19. Q55 is not applicable to IRR
    • a) Considers all cash flows
    • b) Based on time value of money
    • c)Common for all projects
    • d)Stated in % return
20. Q56 Co- efficient of variation indicates that the co- efficient, the risker is
    • a) Higher
    • b) Lower
    • c) Medium
    • d) Zero
21. Q57 ensures that less number of projects are selected by imposing capital
    • a) Capital rationing
    • b) Capital budgeting
    • c) Cost of capital
    • d) Leverage
22. Q58 An estimation of the present value of cash for high risk investments is known
    • a) Sensitivity analysis
    • b) Co — efficient of variation
    • d) Probability Technique
23. Q59 The Technique used to determine how independent variable values will impact a particular dependent variable under a given set of assumptions is defined as
    • a) Sensitivity analysis
    • b) Co — efficient of variation
    • d) Probability Technique
24. Q60 defined as the standard deviation of the probability distribution divided by its expected value
    • a) Sensitivity analysis
    • b) Co — efficient of variation
    • d) Probability Technique
25. Q61 in which uncertain cash flows are converted into certain cash flows by multiplying with probability of occurrence such cash flows
    • a) Sensitivity analysis
    • b) Co — efficient of variation
    • d) Certainty equivalent 62 .------------------------------ type of merger involves, two companies lose their identity & new company comes into existences
    • a) Amalgamation
    • b) Absorption
    • c) Take over
    • d) Merger

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