671. Which of the following is the cheapest source of financing available to a firm?
A.Bank loan
B.Commercial papers
C.Trade credit
D.None

672. Profitability index (PI) rule is to take an investment, if the index exceeds___________?
A.-1
B.0
C.1
D.2

673. When real rate is high, all the interest rates tend to be ___________?
A.Higher
B.Lower
C.Constant
D.None

674. A series of constant cash flows that occur at the end of each period for some fixed number of periods is ____________ .
A.an ordinary annuity
B.annuity due
C.multiple cash flows
D.perpetuity

675. Which of the given area is NOT addressed by Business Finance?
A.Financing
B.Investing
C.Managing day today expenses
D.None

676. In which of the following type of annuity, cash flows occur at the beginning of each period?
A.Ordinary annuity
B.Annuity due
C.Perpetuity
D.None

676. projects which are mutually exclusive but different on scale of production or time of completion than the
A. external return method
B. net present value of method
C. net future value method
D. internal return method

677. A company purchases goods but does not pay payments to suppliers immediately and record them as
A. account payable
B. account receivable
C. current liabilities
D. accumulated liabilities

678. A company sells its stock shares for raising more equity capital is classified as
A. dealer communication offering
B. seasoned equity offering
C. electronic equity offering
D. electronic order offering

679. A company that sells products to customer without demanding immediate payment but record it in balance sheet as
A. account payable
B. account receivable
C. account equivalent
D. account investment

680. A companys low earnings power and high interest cost cause financial changes, which have
A. high return on equity
B. high return on assets
C. low return on assets
D. low return on equity

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
THANK YOU

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