Description : If the aggregate fair market value of prescribed movable property received by a taxpayer as gift during the year is Rs.1,50,000, tax will be charged on ______. a) Rs.1,00,000 b) Rs.50,000 c) Rs.1,50,000 d) Rs.0
Last Answer : c) Rs.1,50,000
Description : The availability of cash and other cash like marketable instruments that are useful in purchases and investments are commonly known as _______ a. Liquidity b. Credit c. Marketability
Last Answer : a. Liquidity
Description : Karan bought 1000 share of ABC Limited at Rs.910 through his broker excluding brokerage and taxes. However, the current market price of that share is Rs.915. Here, the amount of Rs.915 reflects ____________. a) value of share b) cost of investment c) investment value d) price of transaction
Last Answer : a) value of share
Description : The decline in the combined ratio is most likely to indicate that the insurer has ___________. a) increased its administration expenses b) increased its long term borrowing c) improved its investment returns d) improved its underwriting results
Last Answer : d) improved its underwriting results
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 : Which of the following is not a financial service under the Insolvency and Bankruptcy Code, 2016? a) Accepting of deposits b) Effecting contracts of insurance c) Payment of wages to employees d) Establishing an investment scheme
Last Answer : c) Payment of wages to employees
Description : An investment pays Rs.300 annually for five years, with the first payment occurring today. The present value of the investment discounted at a 4% annual rate is approximately __________. a) Rs.1336 b) Rs.1389 c) Rs.1625 d) Rs.1925
Last Answer : b) Rs.1389
Description : ___ is an involuntary exit forced on the VCI as a result totally failed investment. (a) Liquidation b) liability c) none)
Last Answer : (a) Liquidation
Description : The term _________ refers financial investment in highly risky and growth oriented venture with the objective of earning a high rate of retune.(a) Venture capital)Merchant banking c)leasing)
Last Answer : (a) Venture
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 : Buying a company’s accounts receivable on a nonrecourse basis is known as _________ a. Trading b. Billing c. Factoring
Last Answer : c. Factoring
Description : Under the SEBI (Share Based Employee Benefits) Regulations, 2014, appreciation means the difference between the ______________. a) market price of the share of a company on the date of exercise of stock ... a company on the date of exercise of share appreciation right (SAR) and the SAR price.
Last Answer : market price of the share of a company on the date of exercise of stock appreciation right (SAR) or vesting of SAR, as the case may be, and the SAR price.
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 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 : d) secondary market
Last Answer : a) Bargaining
Description : Securities issued by companies are traded in _______________. a) derivatives market b) tertiary market c) primary market d) secondary market
Last Answer : Which of the following is not a conduct most people associate with ethical behaviour? a) Bargaining b) Respect for others c) Loyalty d) Pursuit of excellence
Description : Private ownership of property and resources is a characteristic of _____________ economy. a) socialist b) command c) market d) traditional
Last Answer : c) market
Description : The national output is measured at _____________. a) production prices b) market prices c) cost prices d) wholesale pricesc
Last Answer : b) market prices
Description : Buying low in one market and selling high in the other market , it called ______ a. Arbitrage trading b. Hedging c. Clearing
Last Answer : a. Arbitrage trading
Description : _____has constantly endeavoured to develop the commercial bills market. a. Commercial bank b. RBI c. SBI
Last Answer : b. RBI
Description : ________was constituted to protect the interests of investors in securities and to promote the development of and to regulate the securities market through appropriate measures. a. RBI b. SEBI c. BSE
Last Answer : b. SEBI
Description : ______ is a market for financial assets which have a long or indefinite maturity. a. Financial market b. Capital market c. Money market
Last Answer : b. Capital market
Description : A set of complex and closely connected instructions, agents, practices, markets transactions, claims and liabilities relating to financial aspects of an economy is referred as: _____. a. Financial system b. Financial market c. Financial institution
Last Answer : a. Financial system
Description : The subject matter of an assurance engagement can take the following forms except a. The entity’s internal control. b. Historical or prospective financial statements. c. Evaluation of a capital investment proposal. d. Performance of an entity that could indicate efficiency and effectiveness
Last Answer : Evaluation of a capital investment proposal.
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 : Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? a) The WACC may decrease as a firm's debt-equity ratio increases. b) In the computation of ... of the WACC is based on the number of shares outstanding multiplied by the book value per share.
Last Answer : a) The WACC may decrease as a firm's debt-equity ratio increases.
Description : The nature of the entity refers to the following, except: a. The types of investments that it is making and plans to make. b. Other external factors, such as general economic conditions. c. The ... entity is structured and how it is financed. d. The entity's operations, its ownership, and governance
Last Answer : Other external factors, such as general economic conditions
Description : . The process that evaluates overall project performance to provide confidence is called: a. quality assurance. b. quality planning. c. quality control. d. quality audit.
Last Answer : a. quality assurance.
Description : The process that evaluates overall project performance to provide confidence is called: a. quality assurance. b. quality planning. c. quality control. d. quality audit.
Description : The Competitive Intelligence Officer a. thinks like the competitor by determining how that competitor measures success, looks to the future as to what the competition will do in the next year ... . c. monitors the competition on the production analysis portion of the Courier and evaluates the
Last Answer : a. thinks like the competitor by determining how that competitor measures success, looks to the future as to what the competition will do in the next year to two years, and evaluate how the competition can undercut your company’s performance.
Description : The two characteristics that the perceptual map evaluates are a. Performance and Size. b. Performance and Price. c. Size and Price. d. Reliability and Performance. e. none of the above.
Last Answer : a. Performance and Size.
Description : Which of the following statements is true? a) Debenture holder is an owner of the company. b) Debenture holder can get back its money only on the liquidation of the company. c) A debenture issued ... can be redeemed at a premium. d) A debenture holder receives interest only in the event of profits
Last Answer : c) A debenture issued at a discount can be redeemed at a premium.
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 : 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 : Which of the following situations would invoke "question of law"? a) Disputing parties do not agree to the valuation arrived by the valuer. b) Disputing parties do not agree to choice of the ... from the well accepted principles of valuations. d) Valuer did not submit its report within the time.
Last Answer : c) Valuer has departed from the well accepted principles of valuations.
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 : An analyst is valuing a firm's equity using the ‘Enterprise Value to Revenue Ratio’ of similar firms. Which of the following is not a factor that the analyst should use? a) Revenue growth b) EBITDA margins
Last Answer : d) Debt Equity ratio
Description : When attempting to build a risk premium into the required returns of stocks in a developing country, an analyst should use the ________. a) country spread model b) country's weighted average cost of capital c) modified Gordon growth model d) dividend discount model
Last Answer : a) country spread model
Description : valuer should not use or divulge to other clients or any other party any confidential information about the ______ company. a) subject b) client c) public d) listed
Last Answer : a) subject
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 : The terminal value in year 6 is closest to __________. a) Rs.22.57 b) Rs.20.42 c) Rs.24.30 d) Rs.25.70
Last Answer : a) Rs.22.57
Description : The per share value Dev should assign to RC Ltd. is closest to ___________. a) Rs.15.35 b) Rs.20.86 c) Rs.17.35 d) Rs.18.46
Last Answer : c) Rs.17.35
Description : The required rate of return is closest to ____________. a) 10.012% b) 7.062% c) 0.062% c) 11.065%
Last Answer : c) 0.062%
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 : Which of the following is the capitalization rate of the BC Ltd.? a) 5.0% b) 3 % c) 4% d) 4.5%
Last Answer : c) 4%
Description : What is the annual future earnings of the AZ Ltd. using ‘Capitalization of Earning Method’? a) Rs.150 crore b) Rs.180 crore c) Rs.200 crore d) Rs.190 crore
Last Answer : c) Rs.200 crore
Description : The exemption under section 54 of the Income Tax Act, 1961 is available ___________. e) to the extent of capital gain invested in the house property f) proportionate to the net consideration price invested g) to the extent of amount actually invested h) to the extent of net consideration
Last Answer : to the extent of capital gain invested in the house property
Description : Under the SARFAESI Act, 2002, the Central Registrar may allow the filing of the particulars of creation of security interest within _____ next following the expiry of the period of initial thirty days on payment of additional fee. a) Ten days b) Thirty days c) Twenty-five days d) Fifteen days
Last Answer : b) Thirty days