Managerial Economics and Financial Analysis Mid - II, April - 2012

1.Decision making is faster in
  • Joint stock company
  • Departmental under taking
  • Partnership
  • Sole trader
Answer: D
2.Which of the following is not a feature of partnership?
  • Relationship
  • There should be a business
  • agreement
  • No partner can act for other partners
Answer: D
3.The capital used to meet regular or recurring needs of the business is called
  • Paid –up capital
  • Working Capital
  • Fixed capital
  • Cost of capital
Answer: B
4.The Flow of money in the business is called _______
  • Capital formation
  • Cost cycle
  • Working capital cycle
  • Capital cycle
Answer: C
5.If average collection period is more it means
  • Better collection of receivables
  • Poor collection of receivables
  • Average collection of receivables
  • satisfactory collection of receivables
Answer: B
6.The written agreement among partners is
  • Trading deed
  • Demand
  • Partnership deed
  • Bill of exchange
Answer: C
7.In a partnership firm, the partner’s liability is ________
  • Limited
  • medium
  • Unlimited
  • Large
Answer: C
8.Which of the following integrates economy of a country with the world economy?
  • Privatization
  • Liberalization
  • globalization
  • Stabilization
Answer: C
9.Purchases book records
  • Cash purchases
  • Credit Purchases
  • Goods bought
  • Goods
Answer: B
10.Which of the following measures companies (Current assets – Stock) / Current liabilities?
  • Acid test ratio
  • Current ratio
  • Debtor collection period
  • Stock turn over ratio
Answer: A
11.The liability extending to the personal property of the trader is called _______
Answer: Unlimited liability
12.The partners collectively are called _______
Answer: Firm
13.Fixed assets have ________ degree of liquidity
Answer: Low
14.A Unit of capital is called _____________
Answer: Share
15.Inventory turnover ratio is also called _________
Answer: Stock turnover
16.A ________ partner can be admitted for the benefits of the firm
Answer: Minor
17.The shares of a _______ company can be transferred
Answer: Public
18.A public corporation comes in to existence through a statute passed in ________
Answer: State Legislature (or) parliament
19.Reserves provide working capital at ________ cost
Answer: Zero
20.The ratio between outsiders funds (debt) and insiders funds (equity) is called _________
Answer: Debt – Equity (D/E) ratio