Financial Management Online Test Part 2

6. Profit after tax is also termed as

a. Real Profit
b. Surreal Profit
c. Net Profit
d. Profit

Answer: c. Net Profit

7. Match the Following

1] Earnings per sharei] (Profit after tax - Preference dividend) / Number of Equity shares
2] Operating leverageii] Contribution / Earnings before interest and tax
3] Financial leverageiii] Earning before interest and tax / Earning before tax
iv] Earning per Share/Market Price
a. 1-iii, 2-ii, 3-i
b. 1-ii, 2-iii, 3-iv
c. 1-i, 2-iii , 3-iv
d. 1-i, 2-ii, 3-iii

Answer: d. 1-i, 2-ii, 3-iii

8. _______ cost is directly proportional to sales revenue.

a. Explicit
b. Variable
c. Fixed
d. Semi variable

Answer: b. Variable

9. _____ allows shareholders a to purchase new shares in the same proportion as their current ownership.

a. Rights Issue
b. Dividend Issue
c. Bonus Issue

Answer: d. ESOP

10. On what basis are Inventory levels fixed?

i] Lead Time
ii] Cost of Business
iii] EOQ
iv] Maximum Usage

a. i and ii
b. i and iii
c. i, ii and ii
d. i, iii and iv

Answer: d. i, iii and iv