Question68:-Which method is most suitable to a firm if the demand of its product is based on latest technology ?
A:-Payback Period Method
B:-Profitability Index Method
C:-Net Present Value Method
D:-Average Rate of Return Method
Correct Answer:- Option-A
Question69:-Just-In-Time (JIT) Management is a model used for the management of
A:-Inventory
B:-Debtors
C:-Casual workers
D:-Production
Correct Answer:- Option-A
Question70:-Which of the following statement is wrong in relation to Miller-Orr-Model ?
A:-Upper and lower limits of cash are fixed
B:-It assumes the uniform pattern of cash inflows and outflows
C:-It rectifies the shortcoming of Baumol's Model
D:-None of the above
Correct Answer:- Option-B
Question71:-Which of the following statement is correct in relation to Baumol's Model ?
A:-It helps in determining a firm's optimum cash balance
B:-It assumes that cash payments of the firm occur uniformly over a period of time
C:-As per this model, cash and inventory management problems are one and the same
D:-All the above
Correct Answer:- Option-D
Question72:-Which among the following is a remedy for under capitalisation ?
A:-Redeem long-term debt by issue of fresh equity shares
B:-Issue bonus shares by capitalising accumulated earnings
C:-Issue of right shares by capitalising accumulated earnings
D:-None of the above
Correct Answer:- Option-D
Question73:-Which among the following is a reason for over capitalisation ?
A:-Under-estimation of future earnings
B:-Liberal dividend policy
C:-Depreciation charged at a lower rate
D:-None of the above
Correct Answer:- Option-A
Question74:-Float management is related to
A:-Cash
B:-Goodwill
C:-Inventory
D:-Fixed assets
Correct Answer:- Option-A
Question75:-Lock box system is used to
A:-Reduce the chances of delay and fraud in collection process of cash/cheque
B:-Control the unauthorised withdrawal of cash from cash box
C:-Control the unauthorised access of financial documents
D:-None of the above
Correct Answer:- Option-A
Question76:-Reverse split means
A:-Cancellation of preference shares by redemption
B:-Increasing the number of outstanding shares by issuing bonus shares or right shares
:-Increasing the face value of shares by consolidating the denomination of existing shares
D:-Increasing the number of outstanding shares without any change in the total capital
Correct Answer:- Option-C
Question77:-Which of the following theories says that the value of a firm does not change due to change in dividend paid ?
A:-Walter's Model
B:-Gorden's Model
C:-Modigliani and Miller
D:-None of the above