Financial Services
Question : Questions : Business Finance and Its Meaning
Statement 1: Financial planning plays a critical role in optimizing the allocation of funds.
Statement 2: Financial planning focuses only on allocation of funds to marketing activities.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Correct Answer: Statement 1 is true, and statement 2 is false.
Solution : The correct answer is (a) Statement 1 is true, and statement 2 is false.
Statement 1 is true. Financial planning is crucial for optimizing the allocation of funds across various activities within a business. It involves analyzing
Question : Which of the following financial institutions of India protects the interests of the investors and facilitates the functioning of the stock market intermediaries?
Option 1: Small Industries Development Bank of India(SIDBI)
Option 2: India Infrastructure Finance Company Ltd (IIFCL)
Option 3: National Housing Bank (NHB)
Option 4: Securities and Exchange Board of India (SEBI)
Correct Answer: Securities and Exchange Board of India (SEBI)
Solution : The correct option is the Securities and Exchange Board of India (SEBI).
The Securities and Exchange Board of India (SEBI) is the financial organization in India that safeguards investor interests and promotes the smooth operation of stock market intermediaries.
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 : Meaning and Need for Business Finance
What is the primary purpose of financial planning for a business like XYZ Ltd.?
Option 1: Maximizing profits at any cost
Option 2: Meeting short-term operational needs only
Option 3: Achieving long-term financial goals and stability
Option 4: Reducing the company's workforce
Correct Answer: Achieving long-term financial goals and stability
Solution : The correct answer is (c) Achieving long-term financial goals and stability
Financial planning in a business involves creating a comprehensive strategy to manage financial resources efficiently, allocate funds effectively, and achieve both short-term and long-term financial objectives. It's about ensuring
Question : Case Study: PQR Enterprises - Funding Strategies for Diversification
PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.
Questions : Debentures and Financial Instruments
How do GDRs and ADRs serve similar functions?
Option 1: Both are used to raise funds from domestic markets
Option 2: Both are forms of equity shares
Option 3: Both represent ownership in a company
Option 4: Both enable companies to raise funds in international markets
Correct Answer: Both enable companies to raise funds in international markets
Solution : The correct answer is (d) Both enable companies to raise funds in international markets
GDRs (Global Depositary Receipts) and ADRs (American Depositary Receipts) serve similar functions in that they both allow companies to raise funds in international
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
Statement 1: Need for business finance arises due to risks and uncertainties associated with business operations.
Statement 2: Financial planning eliminates all uncertainties in business activities.
Statement 1 is true. The need for business finance does arise due to risks and uncertainties associated with business operations. Businesses face various
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 : Business Finance and Expansion
Which financial decision involves choosing the appropriate sources of funds for business activities?
Option 1: Marketing strategy
Option 2: Inventory management
Option 3: Financial planning
Option 4: Human resource allocation
Correct Answer: Financial planning
Solution : The correct answer is (c) Financial planning
Financial planning is the process of determining the company's financial goals and objectives and developing strategies to achieve them. It includes decisions related to choosing the right sources of funds to support business activities, manage operational costs,
Questions : Equity Shares and Preference Shares
Which feature makes equity shares different from preference shares?
Option 1: Fixed dividend payments
Option 2: Ownership rights in decision-making
Option 3: Redemption option
Option 4: No voting rights
Correct Answer: Ownership rights in decision-making
Solution : The correct answer is (b) Ownership rights in decision-making
Equity shares provide ownership rights to shareholders, giving them the ability to participate in the decision-making process of the company, such as voting on key issues and electing the board of directors. On
XYZ Ltd. is considering issuing convertible debentures. What does "convertible" mean in this context?
Option 1: The debentures can be redeemed by the company
Option 2: The debentures can be exchanged for equity shares
Option 3: The debentures cannot be traded in the stock market
Option 4: The debentures have fixed interest rates
Correct Answer: The debentures can be exchanged for equity shares
Solution : The correct answer is (b) The debentures can be exchanged for equity shares
Convertible debentures are a type of debt instrument that provides the debenture holder with the option to convert the debentures into equity shares of the
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
