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
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