MGT201 Midterm MCQs 2024 by Miss Mehwish

Past Papers for Mids./Finals are also Available

1. Federal Board of Revenue performs all of the following functions, Except: Options:

• Acts as appellate tribunal for tax payers
• Controlling money supply in Pakistan
• Levy and collection of direct and indirect taxes
• Designing fiscal policy for Pakistan

Correct option: Controlling money supply in Pakistan

Q2. _________ is distribution of profit.

• None of the given options
• Dividend
• Bonus
• Interest

Correct option: Dividend

Q3. _________ is an Islamic form of leasing where an asset is given by a party as a financing to another party and against that fixed amount of rent is charged.

• Modaraba
• Ijara
• Musharaka
• Murabaha

Correct option: Ijara

Q4. Equity is generated through issuance of ________.

• Common shares
• Bonds
• Debentures

Correct option: Common shares

Q5. Investing activities of a business include(s):

• All of the given options are correct
• Investment in short term securities of other companies
• Investment in long term and short term assets
• Investment in shares of other companies

Correct option: All of the given options are correct

Q6. The institutions that provide services which may include but not limited to extending loan for social and community benefits, getting involved in joint ventures, providing factoring service and arranging crowd funding are called:

• Stock Exchange
• Central Banks

Correct option: Non-Banking Financial Companies

Q7. The use of debt in capital structure is known as:

• Capital rationing
• Financial solvency
• Financial leverage
• Factoring

Correct option: Financial leverage

Q8. Financial analysis include (s):

• Cost, Volume and Profit Analysis
• Risk analysis
• Ratio analysis

Correct option: All of the given options

9. Working capital is the part of company’s investment which is made in: Options:

• Fixed assets
• Intangible assets
• Current assets
• Long term assets

Correct option: Current assets

10. Those institutions that are not regulated like banks but provide financial services are called: Options:

• Commercial Banks
• Development Finance Institutions

Correct option: Non-Banking Financial Companies