601. Which of the following terms refers to the use of debt financing?
A. Operating Leverage
B. Financial Leverage
C. Manufacturing Leverage
D. None of the given options

602. In which type of market, new securities are traded?
A. Primary market
B. Secondary market
C. Tertiary market
D. None of the given options

603. Which of the following ratios are particularly interesting to short-term creditors?
A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios

604. A portion of profits, which a company retains itself for further expansion, is known as:
A. Dividends
B. Retained Earnings
C. Capital Gain
D. None of the given options

605. Which of the following is measured by profit margin?
A. Operating efficiency
B. Asset use efficiency
C. Financial policy
D. Dividend policy

606. The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company’s:
A. Managerial activities
B. Year-to-Year activities
C. Day-to-Day activities
D. Financial activities

607. A major facet of financial management involves providing the financing necessary to support:
A. Liabilities
B. Debts
C. Loans
D. Assets

608. The market price of a firm’s stock represents the focal judgment of all market participants as to the value of the:
A. Particular market
B. Particular firm
C. Particular creditor
D. Particular debtor

609. Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the:
A. Workers
B. Subordinates
C. Shareholders
D. Employees

610. Maximizing Shareholder wealth:
A. Relieves the firms responsibility towards society
B. Does not relieve the firm’s responsibility towards society
C. Partially relives the firm’s responsibility towards society
D. None of Them

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