Financial Services
Question : Case Study 5:
LMN Corporation is a multinational conglomerate looking to manage its currency exposure effectively.
Question :
If LMN Corporation decides to issue short-term debt to finance its international operations, which money market instrument might it use?
Option 1: Corporate bond
Option 2: Call money
Option 3: Treasury bill
Option 4: Commercial paper
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
Question : Case Study: ABC Corporation - Financing Growth Strategies
ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.
Questions : Debentures and Financial Instruments
How are GDRs and ADRs similar in terms of their purpose?
Option 1: Both represent debt securities
Option 2: Both are issued in domestic markets
Option 3: Both allow companies to raise funds in their home country
Option 4: Both enable companies to raise capital in international markets
Correct Answer: Both enable companies to raise capital in international markets
Solution : The correct answer is (d) Both enable companies to raise capital in international markets
GDRs and ADRs allow companies to access international capital markets by issuing their shares in the form of depository receipts. GDRs are traded
Question : Case Study: XYZ Ltd. - Raising Finance for Expansion
XYZ Ltd. is a growing company that manufactures electronic gadgets. The company has been successful in the market and is planning to expand its operations. To finance this expansion, XYZ Ltd. is considering various sources of business finance.
Questions : Equity Shares and Preference Shares
Why would XYZ Ltd. choose to issue preference shares rather than equity shares?
Option 1: To gain voting control
Option 2: To avoid paying dividends
Option 3: To secure higher interest payments
Option 4: To raise funds without diluting voting rights
Correct Answer: To raise funds without diluting voting rights
Solution : The correct answer is (d) To raise funds without diluting voting rights
Preference shares allow companies to raise funds from investors without diluting the voting control or ownership of the existing shareholders. Unlike equity shares, preference shares usually do
Hi aspirant,
There are several prestigious institutions in India that provide an online MBA in finance. Here is a list of a few of the reputed institutions offering this course:
1. Xavier School of Management (XLRI)
2. Management Development Institute (MDI)
3. Indian Institute of Foreign Trade (IIFT)
4. Indian
Question : Case Study 22:
DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.
To finance its acquisition plans, DEF Ltd. is evaluating short-term financing options. Which money market instrument might it use?
Option 1: Commercial paper
Option 4: Corporate bond
Solution : The correct answer is (a) Commercial paper
Commercial paper is a short-term unsecured promissory note issued by corporations to raise funds quickly. It is a common choice for businesses looking for short-term financing to support various operational needs, including acquisitions. It provides a quick
The Monetary and Credit Policy is announced by which of the following?
Option 1:
Ministry of Finance in Center
Option 2:
Reserve Bank of India
Option 3: State Bank of India
Option 4: Planning Commission of India
Correct Answer:
Solution : The correct option is Reserve Bank of India.
The Reserve Bank of India (RBI) announces the Monetary and Credit Policy. The RBI uses it as a key policy instrument to control the money supply and credit availability in the economy. Inflation control,
If XYZ Ltd. issues cumulative preference shares, it means that:
Option 1: The shares cannot be redeemed
Option 2: Dividends on these shares must be paid before any arrears
Option 3: These shares cannot be traded in the stock market
Option 4: The company is required to pay dividends at a fixed rate
Correct Answer: Dividends on these shares must be paid before any arrears
Solution : The correct answer is (b) Dividends on these shares must be paid before any arrears
Cumulative preference shares entitle the shareholders to receive their fixed dividends before any dividends are paid to equity shareholders. If the
XYZ Ltd. is considering issuing IDR. What does "IDR" stand for?
Option 1: Indian Debt Reserve
Option 2: International Depository Receipt
Option 3: Indian Dividend Ratio
Option 4: International Debt Redemption
Correct Answer: International Depository Receipt
Solution : The correct answer is (b) International Depository Receipt
An International Depository Receipt (IDR) is a financial instrument denominated in a foreign currency and is offered by a non-resident company outside the country where it is listed. IDRs represent shares of the foreign company
Question : Case Study: LMN Ventures - Financing Innovation and Research
LMN Ventures is a research-driven technology company aiming to innovate and develop cutting-edge products. The company is exploring various sources of business finance to support its research and development endeavors.
Questions : Business Finance and Research
Why might LMN Ventures need external financing for its research and development initiatives?
Option 1: To reduce employee turnover
Option 2: To fund marketing campaigns
Option 3: To minimize production costs
Option 4: To support costly innovation projects
Correct Answer: To support costly innovation projects
Solution : The correct answer is (d) To support costly innovation projects
LMN Ventures might need external financing for its research and development (R&D) initiatives primarily to support costly innovation projects. Research and development involve significant investments in terms of resources, technology, talent,
The Question containing Inaapropriate or Abusive Words
Question lacks the basic details making it difficult to answer
Topic Tagged to the Question are not relevant to Question
Question drives traffic to external sites for promotional or commercial purposes
The Question is not relevant to User
And never miss an important update
