IMT SOLVED ASSIGNMENTS AVAILABLE – FIN005 Test-2
ASSIGNMENT
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Question 1:
Which of the following is an example of Cash Flow from Financing Activity?
a. Income Tax
b. Dividend paid
c. Dividend Received
d. Interest Received
Question 2:
In a merger or acquisition, a firm should be acquired if it:
a. Is a firm in the same line of business. In which the acquirer has expertise
b. is a firm in a totally different line of business which will diversity the firm
c. generates a positive net present value to the shareholders of an acquiring firm
d. pays a large dividend which will provide cash pass through to the acquirer
Question 3 of 30
A budget which includes activities relating to the capital expenditure during the budgeted period is
a. Operating budget
b. Capital budget
c. Function budget
d. cash budget
Question 4 of 30
The positive Incremental net gain associated with the combination of two firms through a merger or acquisition is called:
a. The merger cost
b. goodwill
c. synergy
d. the consolidation effect
Question 5 of 30
Which represents the budgets prepared for the next financial period.
a. Budget estimates
b. Revised estimates
c. forecast estimates
d. Budget plan
Question 6 of 30
A public offer by one firm to directly buy the shares of another firm is called a:
a. Merger
b. Demerger
c. Tender offer
d. Consolidation
Question 7 of 30
A merger of firms engaged at different stages of production but in the same industry is called
a. Vertical merger
b. Horizontal merger
c. Reverse merger
d. Conglomerate merger
Question 8 of 30:
ABC industries has an equity market capitalisation of Rs. 5,000 lakhs in current year. Assume further that its equity share capital is Rs. 1,500 lakhs and its retained earnings are Rs. 900 lakhs. Calculate MVA
a. Rs 3,500 lakhs
b. Rs 4.100 lakhs
c. Rs 2,400 lakhs
d. Rs 2.600 lakhs
Question 9 of 30
_____is the acquisition of an enterprise(s) by a person(s) or merger or amalgamation of enterprises
a. Control
b. Acquisition
c. Coloboration
d. Combinaton
Question 10 of 30
Declining star also known as
a. wild cats
b. Dogs
c. cash cows
d. stars
Question 11 of 30
The price at which an asset can be sold if the firm is liquidatd is
a. Liquidation value
b. Replacement value
c. Economic value
d. Fair value
Question 12 of 30
Merger and amalgamation under the Companies Act requires mandatory sanction by the_____
a. National Company Law Tribunal
b. Central Board of Direct taxes
c. Security Exchange Board of India
d. Competition commission of India
Question 13 of 30
Which of the following is ‘Statement of Changes in Financial Position?
a. Balance Sheet
b. Profit & Loss Statement
c. Cash Flow Statement
d. Notes to Account
Question 14 of 30
______a snapshot of the financial condition of the firm at a particular time.
a. The income statement provides
b. The statement of cash flow
c. The balance sheet
d. The statement of fund flow provides
Question 15 of 30:
Current ratio is 4:1.Net Working Capital is Rs.30,000. Find the amount of current Assets.
a. 6.000
b. 10,000
c. 24.000
d. 40.000
Question 16 of 30
The ideal quick ratio is
a. 02:01
b. 01:01
c. 01:02
d. 02:03
Question 17 of 30
Unrealized gain or loss arising from foreign exchange rates are
a. Cash flow from operating activity
b. Cash flow from financing activity
c. cash flow from investing activity
d. Not cash flow
Question 18 of 30
Principal revenue generating activities of an enterprises are called as
a. Operating activity
b. Financing activity
c. Investing activity
d. Accounting activity
Question 19 of 30
Non-current liabilities are also called
a. Net current liabilities
b. Long-term liabilities
c. Fixed liabilities
d. other liabilities
Question 20 of 30
Equity dividend paid should be classified as cash flow from
a. Operating activity
b. Financing activity
c. Investing activity
d. Not cash flow
Question 21 of 30.
Two forms of Statement of Change in Financial Position (SCPF) which are commonly used are as follows:
a. Balance sheet and Profit & Loss A/c
b. Balance sheet and cash flow statement
c. Cash flow statement and fund flow statement
d. None of these
Question 22 of 30:
P/E ratio is
a. MPS/EPS
b. EPS/MPS
c. MPS-EPS
d. EPS-IMPS
Question 23 of 30:
In recent years, joint ventures are also termed as
a. Strategic alliances
b. partnership firm
c. Demerger
d. Restructuring
Question 24 of 30:
Which analysis help in assessing the effect of changes in input parameters on the financial parameters contained in projected financial statements
a. financial analysis
b. Technical analysis
c. fundamental analysis
d. Sensitivity analysis
Question 25 of 30
Dividend coverage ratio is
a. EBT Preference dividend
b. EAT/Preference dividend
c. DEBIT/Preference dividend
d. Preference dividend/EAT
Question 26 of 30
The process of developing strategy for a business by researching the business and the environment in which is functions is called
a. Strategic alliances
b. Triad power concept
c. strategic plan
d. Strategic analysis
Question 27 of 30
Which of the following is an example of Horizontal Merger?
a. Sunpharma-Ranbaxy
b. BOB, Dena &Vijaya Bank
c. Tata-Corus
d. All of these
Question 28 of 30.
The value at which assets are shown in balance sheet is
a. Market value
b. Economic value
c. Book value
d. Replacement value
Question 29 of 30:
Cash inflows arise from________ assets,______ liabilities, and_______ stockholders” equity.
a. increasing increasing decreasing
b. increasing decreasing, decreasing
c. decreasing increasing increasing
d. decreasing increasing decreasing
Question 30 of 30:
Economic value added (EVA) is also known as
a. excess capacity
b. Residual income.
c. Excess income.
d. Accounting value added