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Tuesday, April 3, 2012

MBA Exam Strategic Finance Question Paper(Strategic Finance Quiz - 4)

1. When a company is able to assess an individual's worth, it helps in increasing its own worth.
[A]TRUE
[B]FALSE



2. Receivables constitutes a substantial portion of current assets of several firms.
[A]TRUE
[B]FALSE



3. It is possible to place a single value for the acquired firm.
[A]TRUE
[B]FALSE



4. The objective of a dividend policy should be to maximize shareholder's return so that the value of his investment is maximized.
[A]TRUE
[B]FALSE



5. Human assets accounting is still to become an accepted trend in the industry.
[A]TRUE
[B]FALSE



6. The buyback shall be made only on stock exchanges with electronic trading facility.
[A]TRUE
[B]FALSE



7. firms use credit policy as a marketing tool for expanding sales.
[A]TRUE
[B]FALSE



8. Tender offers us an alternative approach to acquire another firm.
[A]TRUE
[B]FALSE



9. Articles of association should authorise buy back of securities as per the Company's Act.
[A]TRUE
[B]FALSE



10. An activity model is a tool to assist in understanding & defining the organisation.
[A]TRUE
[B]FALSE



11. It is necessary to identify all costs that may be related to an acquisition.
[A]TRUE
[B]FALSE



12. Diversification helps in preserving a firm's reputation & goodwill.
[A]TRUE
[B]FALSE



13. Cash dividends are taxable at ordinary tax rates.
[A]TRUE
[B]FALSE



14. Segment result is segment revenue less segment expenses.
[A]TRUE
[B]FALSE



15. Book value is based on the balance sheet value of owner's equity.
[A]TRUE
[B]FALSE



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