Search Assignments and Papers Here...


Custom Search

Thursday, April 22, 2010

Strategic Finance - 28

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Match The Following
Question                       Correct Answer                                                              Your Answer
Opportunity cost An asset value when they are the target of an alternative use.    Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay.
Exit cost             Lost efficiency prior to separation, Job vacancy cost during the new search & termination pay. Exit costs of the leaving employee & recruiting & training of the replacement
Historical costs   Sacrifice necessary to hire & train people An asset value when they are the target of an alternative use.
Substitution cost Exit costs of the leaving employee & recruiting & training of the replacement Sacrifice necessary to hire & train people

Multiple Choice Single Answer
Question Book value is relevant to determine the firm's value because of the following reasons except:-
Correct Answer It cannot be used as a starting point to be compared & complimented by other analysis
Your Answer It is used as a starting point

True/False
Question For determining exchange ratio, the model developed by Conn & Nielson is used.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Normally the basis for identifying an enterprise segments are :-
Correct Answer The organizational structure of an enterprise
Your Answer Location of its customers

Multiple Choice Single Answer
Question FEA is a technique to analyze & evaluate :-
Correct Answer Alternative process improvements
Your Answer Alternative process improvements

True/False
Question Arbitrage process implies that security cannot sell at different prices.
Correct Answer True
Your Answer False

Select The Blank
Question ________ is not a characteristic of financial conglomerates.
Correct Answer Provide ineffective competitive process
Your Answer Provide ineffective competitive process

True/False
Question Retained earnings are the most important internal sources of financing the growth of the firm.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Significant influence is the power to :-
Correct Answer Participate in the financial decisions , Participate in the operating policy decisions
Your Answer Participate in the financial decisions , Participate in the operating policy decisions , Control over the
policies

Multiple Choice Single Answer
Question For paying dividends, firms will have a given amount of :-
Correct Answer Cash available
Your Answer Cash available

Multiple Choice Multiple Answer
Question The characteristics of working capital are :-
Correct Answer It is continually required for a going concern , Quantum of working capital fluctuates depending on
the level of activity , It is impacted by numerous transactions on a continuous basis
Your Answer The decisions related are one time decisions only , It is continually required for a going concern ,
Quantum of working capital fluctuates depending on the level of activity

Select The Blank
Question Earning power of the company approach tries to value the ________.
Correct Answer Current value of the assets
Your Answer Income / profit from the assets

Multiple Choice Multiple Answer
Question As per AS 13 Statement, the following are not considered as investments:-
Correct Answer Shares , Debentures , Other securities held as stock in trade
Your Answer Land , Debentures

Multiple Choice Multiple Answer
Question Operating economies of scale are achieved through the following mergers :-
Correct Answer Horizontal , Vertical , Conglomerate
Your Answer Vertical , Conglomerate , Financial

True/False
Question Usually only a single method is used for valuation of shares.
Correct Answer False
Your Answer False

Select The Blank
Question As per residual theory of dividends the focus is on ________.
Correct Answer Growth
Your Answer Growth

True/False
Question Management of working capital refers to the management of total assets and liabilities of a
company.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question The important aspect of dividend policy is :-
Correct Answer To determine the amount of earnings to be distributed to shareholders , Amount to be retained in
the firm
Your Answer To determine the amount of earnings to be distributed to shareholders , Amount to be retained in
the firm

Multiple Choice Multiple Answer
Question The cost of an investment includes charges such as :-
Correct Answer Brokerage , Fees , Duties
Your Answer Brokerage , Fees , Duties

Select The Blank
Question Forfeiting is mostly used for ________.
Correct Answer Big ticket items & durable goods
Your Answer Big ticket items & durable goods

True/False
Question Planning helps an acquiring firm to identify the units it should drop & it should add.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Segment information needs to be presented :-
Correct Answer Only on the basis of the consolidated financial statements
Your Answer As separate financial statements

Select The Blank
Question Postage is an example of ________ cost.
Correct Answer Non traceable cost
Your Answer Input cost

Match The Following
Question Correct Answer Your Answer
Earning per share Acquisition is considered to be a function of the impact of the merger on the EPS Divide
net worth by the number of equity shares outstanding
Book value Divide net worth by the number of equity shares outstanding Acquisition is considered to
be a function of the impact of the merger on the EPS
Appraisal value Provides a list of the reasonableness of results obtained through
methods base upon the going concern concept Evaluate the impact of the merger on EPS & price - earning ratio
Market value Indicate the consensus of the investors Decide if the acquisition is attractive on the basis if NPV

Multiple Choice Multiple Answer
Question Book value of the assets is directly dependent on the accounting policies followed by the company
which is used in the following areas :-
Correct Answer Booking depreciation , Methods of provisions , Inventory valuation
Your Answer Booking depreciation , Methods of provisions , Inventory valuation

Multiple Choice Multiple Answer
Question Every business requires funds on a continual basis for expenses incurred on for :-
Correct Answer Purchase of raw material , Manufacturing costs , Administration
Your Answer Purchase of raw material , Manufacturing costs , Administration

Select The Blank
Question Forward or backward integration is a characteristic of ________.
Correct Answer Vertical Mergers
Your Answer Conglomerate mergers

True/False
Question According to NI Approach, decrease in leverage decreases the overall cost of capital and
increases the firm's value.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question If a firm diversifies managerial teams formed can be shifted from unproductive activities to
productive ones which leads to :-
Correct Answer Improved profitability , Continuity , Growth of the firm
Your Answer Improved profitability , Growth of the firm , Better facilities and work conditions

Multiple Choice Single Answer
Question Best practices, a tool for review process is similar to :-
Correct Answer Bench marking
Your Answer Value added analysis

Multiple Choice Single Answer
Question One of the important assumptions for capital structure theories is :-
Correct Answer Debt and equity are the 2 kinds of funds used by the firm
Your Answer Debt and equity are the 2 kinds of funds used by the firm

True/False
Question If a company has resorted to buyback its shares, it cannot make a further issue of the same kind of
securities within a period of 1 year.
Correct Answer False
Your Answer True

True/False
Question The scope of the data required relates to the scope of the activity model & processes under review.
Correct Answer True
Your Answer True

Select The Blank
Question The ________ cost tier has the advantage of being the simplest to calculate and justify.
Correct Answer Direct
Your Answer Direct

Select The Blank
Question Stock repurchases ________ the debt / equity ratio.
Correct Answer Increases
Your Answer Decreases

Select The Blank
Question The resource theory considers that the competitive position of a firm depends on its ________
Assets.
Correct Answer Specific
Your Answer General

Multiple Choice Single Answer
Question Many companies claim their main assets are their :-
Correct Answer People
Your Answer People

Multiple Choice Multiple Answer
Question The important steps involved in the analysis of mergers & acquisitions are:-
Correct Answer Planning , Searching & screening , Financial evaluation
Your Answer Planning , Searching & screening , Financial evaluation

Select The Blank
Question ________ is not a example of segment liability.
Correct Answer Goodwill
Your Answer Product warranty provision

Select The Blank
Question If a segment is not designated as a ________ it should be included as an unallocated reconciling item.
Correct Answer Reportable segment
Your Answer Business segment

Multiple Choice Multiple Answer
Question The main characteristics of CAPM are :-
Correct Answer It is an equilibrium Model , It describes the pricing of assets as well as
derivatives , Expected security return = Riskless return + beta x (expected market risk premium)
Your Answer It is an equilibrium Model , It describes the pricing of assets as well as derivatives , Expected
security return = Riskless return + beta x (expected market risk premium)

Multiple Choice Single Answer
Question Debt suppliers main concern is :-
Correct Answer Interest & debt repayment
Your Answer Interest & debt repayment

True/False
Question Organisational changes are similar to mission changes.
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question The difference between current assets & current liabilities is known as :-
Correct Answer Net working capital
Your Answer Working capital cycle

Multiple Choice Multiple Answer
Question The 3 groups of participants in a firm are :-
Correct Answer Suppliers of equity , Debt suppliers , Firm Managers
Your Answer Suppliers of equity , Debt suppliers , Firm Managers

Multiple Choice Single Answer
Question When the working capital is less than its peak level :-
Correct Answer The surplus is invested in liquid assets
Your Answer The surplus is invested in liquid assets

Multiple Choice Single Answer
Question According to a survey for reasons for share purchase, what is the percentage of cash distribution to cash holders ?
Correct Answer 0.28
Your Answer 0.28

0 Comments:

An Appeal to SCDL students

Dear SCDL Student,

We at http://scdlpapers.blogspot.com tries to collect and spread the knowledge in terms of the solved papers and assignments which we are getting through SCDL Alumni.
Now we request you to help other students through mutual sharing. Please send your assignment questions/papers to "mindgrill@gmail.com" . We will publish them on this blog along with your name.
Your help can be boon for many students to clear their exams.

Best of Luck and waiting for your contributions.

Team @ MindGrill
 

Interview Preparation | Placement Papers