Description : Typical parameters used in quantitative methods to estimate discount for lack of marketability include ____________. a) duration of the restriction and risk of the investment b) return of the investment c) dividends paid
Last Answer : a) duration of the restriction and risk of the investment
Description : An investment entity evaluates the performance of its investments on __________value basis. a) fair b) book c) market d) use
Last Answer : a) fair
Description : A disadvantage of the Enterprise Value method for valuing equity is that it may be difficult to obtain the information about _______. a) operating income b) market value of debt c) market value of equity d) cash and cash equivalent
Last Answer : b) market value of debt
Description : _____ is useful in differentiating credit quality. .(a) Credit rating b) credit evaluation c) both )
Last Answer : (a) Credit rating
Description : Credit card facility is an excellent example of revolving credit_____(a) Cash credit b) secured credit c) revolving credit)
Last Answer : c) revolving credit)
Description : The payback method for the measurement of return on investment (A) Gives a correct picture of profitability (B) Underemphasises liquidity (C) Does not measure the discounted rate of return (D) Takes into account the cash inflows after the recovery of investments
Last Answer : (C) Does not measure the discounted rate of return
Description : Which of the following is not a Real Account? a) Cash A/c b) Investments A/c c) Out standing rent A/c d) Purchases A/c
Last Answer : c) Out standing rent A/c
Description : How is stamp duty paid in transactions where more than one instrument is required? a) Stamp Duty is paid on all the instruments equally b) Stamp Duty is paid on any one of the instrument c) Stamp ... and on the balance documents only minimum duty is payable d) Stamp duty is paid on ad valorem basis
Last Answer : c) Stamp duty is paid only on one of the principal instruments and on the balance documents only minimum duty is payable
Description : Relief-from-royalty method estimates the value an asset based on the value of the royalty payments __________. a) from which the company is relieved due to its ownership of the asset b) made by the ... by the company from the useful life of the asset d) over and above the internal rate of return
Last Answer : a) from which the company is relieved due to its ownership of the asset
Description : Which of the following would most likely be useful for performing sensitivity analysis of business valuation? a) Standard of Value b) Understanding of Business c) Premise of Value d) Audit Opinion
Last Answer : b) Understanding of Business
Description : Which of the following techniques would be most useful to determine the mass of an impurity in a drug substance? A. NMR B. MS C. IR D. HPLC
Last Answer : B. MS
Description : The free cash flow to the firm (FCFF) is closest to ___________. a) Rs.130 lakh b) Rs.112 lakh c) Rs.118 lakh d) Rs.124 lakh
Last Answer : c) Rs.118 lakh
Description : There are two income-based approaches that are primarily used when valuing a business, the Capitalization of Cash Flow Method and the ___________. a) Net Present Value Method b) IRR Method c) Discounted Cash Flow Method d) Discounted Payback Period
Last Answer : c) Discounted Cash Flow Method
Description : What adjustment is made while using the Discounted Cash Flow method to value cyclical companies? a) Normalize earnings b) Use high discount rate c) Use bank rate for discounting d) Use high growth rate
Last Answer : a) Normalize earnings
Description : One is entitled to initiate insolvency resolution of a corporate debtor when the corporate debtor __________. a) does not have enough liquid cash to continue operations as a going concern b) has failed to ... debt when due and payable c) has ceased to be a going concern d) has negative net worth
Last Answer : b) has failed to repay a debt when due and payable
Description : In case of valuation of firms for takeovers, which of the following provides a better estimate of value? a) Cash flows b) Free cash flows c) Future cash flows d) Free cash flow to equity
Last Answer : d) Free cash flow to equity
Description : What do ‘Cash Cows’ symbolize in The Boston Consulting Group's product portfolio matrix? a) Remain Invested b) Problem Child c) Stable Cash Flow d) Cash Traps
Last Answer : c) Stable Cash Flow
Description : Which of the following methods is included in ‘Asset based approach’ (cost-based approach)? a) Comparable Companies’ Multiple Method b) Replacement Method c) Earnings Capitalization Method d) Discounted Cash Flow Method
Last Answer : b) Replacement Method
Description : Which of the following valuation methods would most likely not be used for business valuation? a) Discounted Cash Flow b) Net Assets Method c) Multi-period Excess Earning Method d) Industry Price Earnings Ratio
Last Answer : c) Rs.200 crore
Description : Which of the following is not a cash inflow? a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets
Last Answer : c) Decrease in creditors
Description : Which of the following may not be a part of projected financial statements? a) Income Statements b) Trial Balance c) Cash Flow Statements d) Balance Sheets
Last Answer : b) Trial Balance
Description : Cheque card issued by a bank which guarantees the payment of_______ within prescribed limit. (a) Cheque b) purchase c) cash
Last Answer : (a) Cheque
Description : When an investor uses a derivative instrument to reduce his exposure to the price volatility of certain underlying assets, he is said to be _______. a) speculating b) squaring c) hedging d) arbitraging
Last Answer : c) hedging
Description : ‘Economies of Scale’ arises from _______ synergy in Merger and Acquisitions. a) operating b) financial c) managerial d) market
Last Answer : a) operating
Description : A person appointed by an agent to act for the principal is called _______. a) agent b) sub-agent c) substituted agent d) pretended agent
Last Answer : b) sub-agen
Description : In agreements of a purely domestic nature, the intention of the parties to create legal relationship is _______. a) to be proved to the satisfaction of the court b) presumed to exist c) deemed to exist d) not relevant at all
Last Answer : In agreements of a purely domestic nature, the intention of the parties to create legal relationship is _______. a) to be proved to the satisfaction of the court b) presumed to exist c) deemed to exist d) not relevant at all
Description : _______ look for opportunities to take on risk in the hope of making return a. Shareholder b. Hedgers c. Speculators
Last Answer : c. Speculators
Description : _______ is the process of updating the accounts of the trading parties. a. Underwriting b. Clearing c. Banking
Last Answer : b. Clearing
Description : No stamp duties are levied on LC backed bills up to _______ days. a 120 b 100 c 90
Last Answer : c 90
Description : The _______ bill is properly stamped. a. Demand b. Usance c. Expired
Last Answer : b. Usance
Description : The buyer accepts the invoice and acknowledges _______ on the due date a. Seller b. Paying c. Buyer
Last Answer : b. Paying
Description : NBFC performs great role for finance in _______ a. Wholesale sector b. Big Scale industries c. Small scale and Retail sector
Last Answer : c. Small scale and Retail sector
Description : During a merger and acquisition transaction, the ability to find and use good comparable data for a valuation is relatively ____________. a) easy because each successful company within an industry ... depth, product diversity and access to lines of credit seldom match the company being valued
Last Answer : d) difficult because size differential, management depth, product diversity and access to lines of credit seldom match the company being valued
Description : The credit default spread method of valuation of a guarantee given by a parent company on behalf of its subsidiary involves estimating the value ____________. a) using credit default spread based on ... guarantor c) based on probability of default d) of the guarantee using an option pricing model
Last Answer : a) using credit default spread based on the credit rating of the subsidiary
Description : ___________ is the risk that an issuer will fail to satisfy the terms of the agreement with respect to the timely payment of interest and principal. a) Default risk b) Credit spread risk c) Volatility risk d) Downgrade risk
Last Answer : a) Default risk
Description : ______ is used to estimate the worthiness of the credit for company, country or any individual company. .(a) credit evaluation b) Credit rating c) both )
Last Answer : b) Credit rating
Description : ______ is a privilege of credit card offered to the family members i.e. spouse, parents or children above 18 years of age of the primary credit card holder. (a) Add- plus card b) Add on card c) both)
Last Answer : b) Add on card
Description : ______ is an isolated function of a credit risk evaluation.(a) Credit rating b) credit evaluation c) both )
Description : _____ is a process of evaluating risk associated with the credit instrument.(a) Credit rating b) credit evaluation c) both )
Description : Credit rating is an expression of credit rating agencies regarding debt instrument on a specific date on______. (a) Risk evaluation b) Product c) services)
Last Answer : (a) Risk evaluation
Description : The limitations of credit rating include______.(a)Rating changes b) Industry specific c) both)
Last Answer : c) both)
Description : The credit ratings are expressed as____.(a) Alphabetical b) Alpha numerical c) both)
Last Answer : b) Alpha numerical
Description : ______ is the opinion of the rating agency on the relative ability and willingness of the issuer of the debt instrument to meet the debt service obligation as and when the arise. (a) merit rating b) credit rating c) rating by merchant banker )
Last Answer : (a) merit rating
Description : An applicant scoring more than ______ point is considered as one with goods credit standing.(a)50 b)70 c) 40)
Last Answer : b)70
Description : Methods of consumer credit scoring are______.(a) Specific Fixed Formula b)Machinery risk formula c) Both)
Last Answer : c) Both)
Description : Under forfaiting the client is able to get credit facility to the extent of_______ a. 100% of the value of the export bill b. 80% of the value of the export bill c. 90% of the value of the export bill
Last Answer : a. 100% of the value of the export bill
Description : Credit Protection is available in ______ a. Without Recourse factoring b. With recourse factoring c. None of the above
Last Answer : a. Without Recourse factoring
Description : Ambiguity introduced by way by which organization finances its investments is A. country risk B. liquidity risk C. financial risk D. business risk
Last Answer : C. financial risk
Description : Would people get better deals at car dealerships if they paid cash for their car purchases instead of using credit?
Last Answer : You can negoitate a better rate if you use cash than credit. Dealers like cash.