Q. Financial management is a part of ---------------------
✅ Correct Answer: (B)
Business management
Financial Management MCQs and Notes
Q. The finance function is/are ----------------------
✅ Correct Answer: (D)
All of these
Q. Which is the limitation of traditional approach of financial management
✅ Correct Answer: (D)
All of these
Q. --------------- theory is applicable only when the dividend pay out ratio is 100%
✅ Correct Answer: (A)
MM theory
Q. According to NOI theory, the value of the firm depends on -----------
✅ Correct Answer: (D)
Business risk
Q. Net operating income(NOI) approach was propounded by ------------
✅ Correct Answer: (C)
Modigilani-Miller
Q. The traditional approach of capital structure was propounded by -------------------
✅ Correct Answer: (B)
Solomon Ezra
Q. Buying a security from low priced market and selling at high priced market is called -------------
✅ Correct Answer: (B)
Arbitrage
Q. --------------- leverage is obtained from the equation EBIT/EBT
✅ Correct Answer: (B)
Financial leverage
Q. According to ------------------ the degree of leverage is irrelevant in determining the value of a firm
✅ Correct Answer: (A)
MM theory