In which form of Business, owners have limited liability:
A. sole proprietorship
B. partnership
C. joint stock company
D. none of the above
Which of the following ratios are particularly interesting to shortterm creditors:
A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Profitability Ratios
D. Market Value Ratios
Which of the following is a special case of annuity, where the stream of cash flows continues forever:
A. Ordinary Annuity
B. Special Annuity
C. Annuity Due
D. Perpetuity
Quick Ratio is also known as:
A. Current Ratio
B. Acid-test Ratio
C. Cash Ratio
D. None of the given options
Which of the following ratios are intended to address the firm’s financial leverage:
A. Liquidity Ratios
B. Long-term Solvency Ratios
C. Asset Management Ratios
D. Profitability Ratios
Which of the following form of business organization is least regulated:
A. Sole-proprietorship
B. General Partnership
C. Limited Partnership
D. Corporation
The conflict of interest between stockholders and management is known as:
A. Agency problem
B. Interest conflict
C. Management conflict
D. Agency cost
A model which makes an assumption about the future growth of dividends is known as:
A. Dividend Price Model
B. Dividend Growth Model
C. Dividend Policy Model
D. All of the given options
____ refers to the most valuable alternative that is given up if a particular investment is undertaken:
A. Sunk cost
B. Opportunity cost
C. Financing cost
D. All of the given options
Which of the following is the cheapest source of financing available to a firm:
A. Bank loan
B. Commercial papers
C. Trade credit
D. None of the given options.
