Correct Answer:- Option-A
Question57:-Retum on capital employed is also known as
A:-Retum on investment
B:-Retumn on share holders fund
C:-Retumn on total asset
D:-Retum on fixed asset
Correct Answer:- Option-A
Question58:-A highly geared company exposes to
A:-Inflation risk
B:-Financial risk
C:-Business risk
D:-Internal rate risk
Correct Answer:- Option-B
Question59:-The cost of capital is not similar to one of the following
A:-Cut-off rate
B:-Hurdle rate
C:-Target rate
D:-Intemal rate of retum
Correct Answer:- Option-D
Question60:-The non-productive projects are to be financed by
A:-Debt and equity fund
B:-Equity fund
C:-Retained eamings
D:-Debt fund
Correct Answer:- Option-C
Question61:-A situation where costs and revenue rise at the same rate is known as
A:-Differential inflation
B:-Real inflation
C:-Synchronized inflation
D:-None of these
Correct Answer:- Option-C
Question62:-The adoption of JIT supply chain management,vendor management will drastically reduces the level of
A:-Raw material stock
B:-Finished goods stock
C:-Work in progress stock
D:-All of the above
Correct Answer:- Option-D
Question63:-A situation where the company do not have funds sufficient to run its normal operations smoothly
A:-Over trading
B:-Over capitalization
C:-Under capitalization
D:-None of the above
Correct Answer:- Option-C
Question64:-The credit offered by a business firm to another business firm as a part of trade transactions
A:-Trade credit
B:-Consumer credit
C:-Cash discount
D:-Cost of credit
Correct Answer:- Option-A
Question65:-One of the following is a common source of finance for a small business firm
A:-Factoring

D:-Bill acceptance
Correct Answer:- Option-C
Question66:-The expected rate of retum that equates to the market rate of interest for investment of a similar risk profile
A:-Opportunity cost
B:-Marginal cost
C:-Weighted average cost