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Monday, April 2, 2012

Strategic Finance Quiz - 3

1. Baumul`s Model is similar to EOQ model in inventory management.
[A]TRUE
[B]FALSE



2. To `gather costs', means capturing all relevant expenses that pertain to the selected model and processes.
[A]TRUE
[B]FALSE



3. Appraisal value of a firm can be acquired from an independent appraisal agency.
[A]TRUE
[B]FALSE



4. Notes payable means the buyer signs a note that evidences a debt to the seller.
[A]TRUE
[B]FALSE



5. Retained earnings are the most important internal sources of financing the growth of the firm.
[A]TRUE
[B]FALSE



6. Usually only a single method is used for valuation of shares.
[A]TRUE
[B]FALSE



7. Management of working capital refers to the management of total assets and liabilities of a company.
[A]TRUE
[B]FALSE



8. Planning helps an acquiring firm to identify the units it should drop & it should add.
[A]TRUE
[B]FALSE



9. According to NI Approach, decrease in leverage decreases the overall cost of capital and increases the firm's value.
[A]TRUE
[B]FALSE



10. The scope of the data required relates to the scope of the activity model & processes under review.
[A]TRUE
[B]FALSE



11. The accounting records serve as the major source of cost data.
[A]TRUE
[B]FALSE



12. optimum cash balance under certainty i.e. Baumul`s model allows the cash flow to fluctuate.
[A]TRUE
[B]FALSE



13. The statute governing an enterprise may provide the basis for computation of the depreciation.
[A]TRUE
[B]FALSE



14. Decisions related to working capital are repetitive & frequent.
[A]TRUE
[B]FALSE



15. Dividends increase the current returns for shareholders.
[A]TRUE
[B]FALSE



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