The Global Open University 2012-1st Year M.B.A Global open University of Accounting and Financial Administration - Question Paper

jan, 2012
Duration: two Hours
Course: MBA
Year: 1st Year
Paper Name: Accounting and Financial
Administration
ATTEMPT ALL THE beneath MENTIONED QUESTIONS:
1. Which of the subsequent is likely to
be accurate for a company, which
invests in projects with Positive
NPV?
a. Company's EVA (Economic Value
Added) rises by the identical value
b. Company's MVA (Market Value Added)
or market value rises
c. Company Shareholders' Wealth rises
d. All of the provided choices
2. If the marginal reduction in order
costs exceeds the marginal carrying
cost of inventory, then what should
be done by the firm?
a. The firm has minimized its total
carrying costs.
b. The firm should increase its order size
c. The firm should reduce its order
size
d. The firm has maximized its order
costs
3. Which of the subsequent is as EBIT?
a. Funds given by operations
b. Earnings before taxes
c. Net income
d. Operating profit
4. Which of the subsequent is the
general assumption of Percent of
Sales Forecasting?
a. Current Assets usually grow in
proportion to Revenues
b. Current Assets usually grow in
proportion to Expenses
c. Current Assets usually grow in
proportion to Liabilities
d. Current Assets usually grow in
proportion to Sales
5. In two years you are to receive
Rs.10,000. If the interest rate were to
suddenly decrease, the current value
of that future amount to you would
__________.
a. Fall
b. Rise
c. Remain unchanged
d. Incomplete info
6. Effective interest rate is various
from nominal rate of interest because
a. Nominal interest rate ignores
compounding
b. Nominal interest rate includes
frequency of compounding
c. Periodic interest rate ignores the
effect of inflation
d. d All of the provided choices
7. What is a legal agreement, also
called the deed of trust, ranging from the
corporation issuing bonds and the
bondholders that establish the terms
of the bond issue?
a. Indenture
b. Debenture
c. Bond
d. Bond trustee
8. Which of the subsequent would
generally have unlimited liability?
a. A limited partner in a partnership
b. A shareholder in a corporation
c. The owner of a sole proprietorship
d. A member in a limited liability
company (LLC)
9. Why we need Capital rationing?
a. Because, there are not enough
positive NPV projects
b. Because, companies do not always
have access to all of the funds they
could make use of
c. Because, managers obtain it difficult
to decide how to fund projects
d. Because, banks require very high

Earning:   Approval pending.