Q. _____________is the particular combination of debt & equity used by a company of finance its overall operations and growth.
✅ Correct Answer: (C)
Capital structure
Functional Areas of Business MCQs and Notes
Q. The manager who looks after the activities of the Finance Department is known as
✅ Correct Answer: (B)
Financial Manager
Q. Working capital is the proportion of the total capital which is employed in
✅ Correct Answer: (B)
short term or current operations
Q. According to MM approach, the total value of the firm remain
✅ Correct Answer: (D)
constant
Q. The process of allocating scarce resources of a business firm among the competing investment projects can be considered as
✅ Correct Answer: (A)
investment decision
Q. The company is usually required to pledge assets of the company to the lender as collateral under
✅ Correct Answer: (B)
debt financing
Q. Shares which are not only entitled to a fixed preferential dividend but also participate in the surplus profits are known as
✅ Correct Answer: (A)
cumulative preference shares
Q. Finance raised by ways of loans and credit from public, banks, and financial institutions is known as
✅ Correct Answer: (D)
borrowed capital
Q. Funds needed for acquiring fixed assets are known as
✅ Correct Answer: (B)
long term finance
Q. ________ is traditionally considered as the main objective of the firm
✅ Correct Answer: (B)
Profit maximization