MGT201 Solved MCQs Set 2 by VUBuddy

MGT201-SOLVED MCQS BY PIN2.

Q1. Which of the following is a type of bond?

1. Maturity bond
2. Zero coupon bond
3. Coupon bond
4. All of the given options

Correct option: d) All of the given options

Q2. Which of the following is known as the theory of irrelevance?

1. Bird in hand theory
2. Traditional theory
3. Net operating income theory
4. All of the given options

Correct option: a) Bird in hand theory

Q3. Prime objective of a commercial business is:

1. Profit maximization
2. Fulfillment of corporate social responsibilities
3. Economic uplift
4. All of the given options

Correct option: a) Profit maximization

Q4. A company with _____ interest charges will pay _____ tax.

1. Less, high
2. High, high
3. High, less
4. Less, less

Correct option: c) High, less

Q5. Which of the following is the general assumption of capital structure theories?

1. Cost of debt < cost of equity
2. All of the given options
3. No taxes
4. There is no change in risk perception of the investors with the change in capital structure

Correct option: d) There is no change in risk perception of the investors with the change in capital structure

Q6. _______ represents a percentage of debt in the total capital.

1. Operating leverage
2. None of the given options
3. Financial leverage
4. Capital structure

Correct option: c) Financial leverage

Q7. Cost of capital includes:

1. Cost of bonds
2. All of the given options
3. Cost of common shares
4. Cost of preferred shares

Correct option: b) All of the given options

Q8. Contribution margin is calculated through:

1. Profit - total fixed cost
2. Sales - total fixed cost
3. Profit - per unit fixed cost
4. Sales - total variable cost

Correct option: d) Sales - total variable cost

Q9. Leverage is the use of fixed cost to enhance profits; the fixed cost can be:

1. Marginal
2. Both operating and Financial
3. Financial
4. Operating

Correct option: c) Financial