Which of the following is not an inventory?

• A) Consumable tools
• B) Equipment
• C) Semi-finished goods
• D) Raw material

According to Capital asset pricing model, the overpriced stocks have:

• A) Negative Alpha
• B) Zero Beta
• C) Positive Alpha
• D) Negative Beta

Which of the following is/are component(s) of capital asset pricing model (CAPM)?

• A) Risk Free Rate of Return
• B) Beta
• C) All of the above given options
• D) Market Rate of Return

Coefficient of variation is a measure of relative dispersion (risk) per unit of:

• A) Expected return
• B) All of the above given options
• C) Expected volatility
• D) Expected risk

Which of the following is correct formula for contribution margin ratio?

• A) Sales / Variable costs
• B) Sales / Contribution margin per unit
• C) Fixed cost / Contribution margin per unit
• D) Total contribution margin/ Sales

Assume, ABC Company was following conservative working capital policy and now it wants to move to an aggressive policy. As a result of this shift in policy, the company should expect which of the following?

• A) Decrease in liquidity, while expected profitability will increase
• B) Both risk and profitability will decrease
• C) Both risk and liquidity will increase
• D) Expected profitability will increase, while risk will decrease

If the trade discount of “2/10 net 30” is missed, then the rational manager should make the payment at which point of time?

• A) On the final due date
• B) None of the given option
• C) Should delay the payment even after the final due date
• D) As soon as possible

Lead time is defined as:

• A) Length of time it takes to order inventory
• B) Time before production is assumed
• C) Length of time between ordering and receiving inventory order
• D) Length of time before stock out

Which of the following statement is true in regards to “2/15 net 30”?

• A) A 15% discount will be given if payment is made within 30 days
• B) A 2% discount will be given if payment is made within 15 days
• C) A 2% discount will be given if payment is made within 30 days
• D) A 15% discount will be given if payment is made within 15 days

Systematic risk is also known as:

• A) Controllable Risk
• B) Avoidable Risk
• C) Undiversifiable Risk
• D) Diversifiable Risk

Gross working capital can further be classified according to:

• A) Rate of return and financing method
• B) Time and components
• C) Time and rate of return
• D) Time and financing method

Which of the following is/are motives of holding cash?

• A) Precautionary
• B) Speculative
• C) Transactional
• D) All of the given options

Which of the following reflects the variability in portfolios return due to change in market return?

• A) Standard deviation
• B) Unsystematic risk
• C) Coefficient of variation
• D) Systematic risk

Keeping in mind the concept of market portfolio, which of the following statement is false?

• A) The market portfolio includes all risky assets in the world
• B) The market portfolio lies on the capital market line
• C) The market portfolio lies on the security market line
• D) The market portfolio contains both systematic and unsystematic risk

Market risk is also known as:

• A) Systematic risk
• B) All of the above given options
• C) Volatility risk
• D) Unavoidable risk

The ratio of standard deviation (SD) to mean of the distribution is known as:

• A) Covariance
• B) Coefficient of variation
• C) Correlation
• D) None of the above given options

The time period between ordering and receiving inventory order is known as:

• A) Over time
• B) All of the given options
• C) Carrying time
• D) Lead time

Which of the following is/are the component(s) of return?

• A) Additional amount on investment
• B) Dividend
• C) All of above given options
• D) Interest

Which of the following is the feature of a perfect market?

• A) All of the given options
• B) Large number of buyers and sellers
• C) No product differentiation
• D) No barriers of entry and exist

Capital structure represents a mix of:

• A) Debt and long term assets
• B) Debt and Equity
• C) Equity and long term liabilities
• D) Equity and preferred stock