Correct Answer: Commercial paper

Solution : The correct answer is (d) Commercial paper

If LMN Corporation decides to issue short-term debt to finance its international operations, it might use commercial paper as a money market instrument. Commercial paper is a short-term unsecured promissory note issued by corporations and financial institutions to meet short-term funding needs. It is a common choice for companies seeking short-term financing to support their operations, including international ventures. Commercial paper typically has maturities ranging from a few days to 270 days.

In Gujarat, several colleges offer MBA in Finance, suitable for Mechanical Engineering graduates looking to shift to management. Top choices include:

1. Indian Institute of Management, Ahmedabad (IIM-A) – Known for its world-class MBA program.

2. MICA, Ahmedabad – Offers an MBA with finance-related electives.

3. Nirma University, Ahmedabad – Known for strong MBA programs with a focus on finance.

4. Gujarat University – Affordable and reputable.

5. BK School of Business Management – Another solid option for an MBA in Finance.

Each offers strong industry connections and place

ments in finance.

Correct Answer: The company has the option to buy back the debentures
    

Solution : The correct answer is (b) The company has the option to buy back the debentures

When debentures are labeled as "callable," it means that the issuing company has the right, but not the obligation, to buy back or redeem the debentures before their maturity date. Typically, there are specific terms and conditions outlined in the debenture agreement regarding when and how the company can exercise this option to call or buy back the debentures. This provides flexibility to the company to manage its debt and capital structure.

Correct Answer: Speaker of Lok Sabha

Solution : The correct answer is the Speaker of Lok Sabha.

General elections are used to choose the Lok Sabha members. The speaker of the Lok Sabha and the deputy speaker are chosen by the majority of members of Parliament present and voting in the assembly. Thus, appointment to the Lok Sabha Speaker position is not made by the Indian President.

Correct Answer: Securities and Exchange Board of India
 

Solution : The correct answer is (a) Securities and Exchange Board of India

The full form of SEBI is Securities and Exchange Board of India. SEBI is the regulatory body in India that oversees and regulates the securities market, protecting the interests of investors and promoting the development and regulation of the securities market.

Correct Answer: Both are true 

Solution : Money market is that market way transactions in short term securities are made it means those securities with a payment period is up to 1 year since their maturity period is very short they are also called near money. Discount Finance House of India provides a ready market for money market instruments.Instruments of the money market are close substitutes for money. Money market instruments are highly liquid in nature.

Hence, option A is correct.

Correct Answer: Preference shares pay higher dividends
 

Solution : The correct answer is (a) Preference shares pay higher dividends

Preference shares typically have fixed dividend rates, and shareholders holding preference shares are entitled to receive these fixed dividends before any dividends are distributed to equity shareholders. This characteristic often makes preference share dividends appear higher or more stable compared to the variable dividends associated with equity shares.

Correct Answer: Achieving long-term sustainability goals
  

Solution : The correct answer is (b) Achieving long-term sustainability goals

Financial planning with a focus on sustainability aims to ensure that UVW Industries can allocate financial resources strategically to achieve their long-term sustainability objectives. This involves budgeting, forecasting, and managing funds in a way that supports sustainable practices, eco-friendly projects, and initiatives that contribute to the company's environmental and social responsibility goals. While financial planning does involve managing operational expenses and meeting financial obligations, the overarching objective in this context is to promote sustainability and responsible business practices for the long-term benefit of the company and the environment.

Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
 

Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

The assertion is true. The need for business finance does indeed arise due to uncertainties and risks that businesses face in their operations. Uncertainties in the market, economic fluctuations, competition, changes in consumer behavior, and various other unpredictable factors necessitate financial planning and resources to mitigate risks and sustain the business.

The reason is the correct explanation. Business operations are not always predictable and stable. The business environment is characterized by uncertainties, and operations can be affected by various factors, leading to fluctuations and risks. Due to this unpredictability, businesses need financial resources to navigate through challenges, ensure stability, and seize opportunities that arise. Finance helps in managing and mitigating the impact of uncertainties and risks on business operations.

Correct Answer: Ownership in the company

Solution : The correct answer is (c) Ownership in the company

Equity shares represent ownership or equity ownership in a company. Shareholders who hold equity shares have ownership rights in the company, which typically includes voting rights, the right to share in the company's profits (through dividends), and the right to participate in decision-making processes related to the company's operations and policies. Unlike debt securities (e.g., debentures), equity shares do not guarantee fixed dividend payments or redemption; instead, the dividend payments to equity shareholders are variable and based on the company's profitability and the decisions of the board of directors.