971. A higher inventory ratio indicates
A. Better inventory management
B. Quicker turnover
C. Both ‘A’ and ‘B’
D. None of the above
972. A Low Return on Investment Ratio (ROI) indicates
A. Improper utilization of resources
B. Over investment in assets
C. Both ‘A’ and ‘B’
D. None of the above
973. Following is (are) the characteristic(s) of a budget
A. It outlines projected activities
B. Expressions are made in quantitative terms
C. It is for a fixed period
D. All of the above
974. Sales expenditure budget is prepared by estimating the expense(s) of
A. Advertisement
B. Market analysis
C. Salesman’s salary
D. All of the above
975. Budgeting is difficult to apply in the following cases
A. Products subjected to rapid changes
B. Job order manufacturing
C. Uncertain market conditions
D. All of the above
976. A Master Budget consists of
A. Sales budget
B. Production budget
C. Material budget
D. All of the above
977. Which of the following has the highest cost of capital?
A. Loans
B. Equity shares
C. Bonds
D. Preference shares
978. The overall capitalisation rate and the cost of debt remain constant for all degrees of financial leverage is advocated by
A. Traditional Approach
B. Net Income Approach
C. Net operating Income Approach
D. M-M Approach
979. The cost of debt capital is calculated on the basis of
A. Net proceeds
B. Annual Interest
C. Capital
D. Arumal Depreciation
980. Which of the following is not included in the assumption on which Myron Gorden proposed a model on Stock valuation
A. Retained earning the only source of financing
B. Finite Life of the firm
C. Taxes do not exist
D. Constant rate of return on firms investment.