Strategic Management SCDL Pune Exam Paper - 33

Multiple Choice Multiple Answer
Question	The financial framework of a merger decision covers 3 interrelated aspects i.e. :-
Correct Answer	Financing techniques in mergers , Analysis of merger as a capital budgeting decision , Determining the firm's value
Select The Blank
Question	A company shall buyback its shares through the stock exchange by making a public announcement at least ________ days prior to the commencement of buyback.
Correct Answer	Seven
True/False
Question	optimum cash balance under certainty i.e. Baumul`s model allows the cash flow to fluctuate.
Correct Answer	FALSE
True/False
Question	Appraisal value of a firm can be acquired from an independent appraisal agency.
Correct Answer	TRUE
True/False
Question	Accounting standards (AS - 13) is now mandatory.
Correct Answer	TRUE
Multiple Choice Multiple Answer
Question	To gather costs means to do the following actions to support the costing of the activities :-
Correct Answer	To capture , To construct , To synthesize the correct cost figures
Select The Blank
Question	If firms have same technology ________ makes the difference i.e. firms become more productive .
Correct Answer	Solid human resource team
Select The Blank
Question	In many companies, there is no formal record of________.
Correct Answer	Investment in employees
True/False
Question	The chance of bankruptcy is small when the leverage of a firm is small.
Correct Answer	TRUE
Select The Blank
Question	The total cost of the activity model allocated by the applied activity drivers to the output of the activity model is called________.
Correct Answer	The cost of the output
Multiple Choice Multiple Answer
Question	A firm using a conservative policy for determining the requirements of current assets :-
Correct Answer	Has fewer production stoppages , Ensures quick deliveries to customers , Stimulates sales
Multiple Choice Multiple Answer
Question	The budgetary records are useful for:-
Correct Answer	Validating accounting costs , Providing a rationale for division of costs , Replacing missing data
Multiple Choice Single Answer
Question	When a company has resorted to buyback of its shares it cannot make a further issue of the same kind of securities within a period of how many months?
Correct Answer	6 months
Multiple Choice Single Answer
Question	The bottom line of ABC Process is :-
Correct Answer	To achieve a better method of doing the right business pf the organisation
Select The Blank
Question	The most popular kind of dividend policy is one that pays a ________.
Correct Answer	Regular, steady dividend
Multiple Choice Multiple Answer
Question	Due to diversification employees seek:-
Correct Answer	Job security , Better opportunities within the firm , Higher compensation
Select The Blank
Question	In the reproduction value method of valuation, the value of assets is taken to be on the basis of ________
Correct Answer	Replacement cost
Select The Blank
Question	The advantage of ________ is that the company is not required to wait for the payment by the bill issuer.
Correct Answer	Bill discounting
Multiple Choice Single Answer
Question	In a growth firm, internal rate is :-
Correct Answer	More than opportunity
Multiple Choice Multiple Answer
Question	Shortcomings of accounting numbers consist of the following :-
Correct Answer	Firms use different kind of accounting methods , Business risk and financial risk do not have any influence on accounting numbers
Multiple Choice Single Answer
Question	Internal financing means the firm finances all investments through :-
Correct Answer	Retained earnings
Multiple Choice Single Answer
Question	The earning power of the company approach includes :-
Correct Answer	Mainly discounting of all future earnings
Multiple Choice Single Answer
Question	A firm should consider acquisition as a :-
Correct Answer	Capital budget decision
Multiple Choice Single Answer
Question	Firms which have marked seasonality in their operations usually have :-
Correct Answer	Highly fluctuating working capital requirement
Multiple Choice Single Answer
Question	Decrease in leverage results in increasing the :-
Correct Answer	Overall cost of capital

Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct.