INSTURCTION
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1. What do businesses need in order to meet the most critical requirement in the economic world?
2. Why is it necessary for financial managers to honour their legal obligations?
3. An entity the facilitates financial transactions between a deficit spending unit to a surplus spending unit is known as what?
4. Which of the following is not a money market instrument?
5. In the financial market, the primary market is also known as
6. Funds provided by individual investors, companies, corporate financial institutions to finance business activities as and when required fall under the domain of
7. Which of the following is the best control device in order to evaluate the performance of various financial policies?
9. A situation where a firm is producing satisfactorily but not maximum profit is known in finance as
10. The management of the business's inventory, current liabilities, accounts receivables as well as money owed to suppliers is referred to as
11. Which form of credit is granted to a business by the suppliers on the assurance that the repayment would be done at regular intervals of time?
12. Statement 1: One of the purposes of short-term finance is to ensure smooth running of business.
Statement 2: One demerit of short-term finance is that it meets the short-term financial needs and can be raised as and when required.
13. Many venture capitalists subscribe to the 2-6-2 rule of thumb. What does this rule mean?
14. Which type of capital is required to meet the long-term purpose of a business concern?
15. When a business is unable to earn fair rate on its outstanding securities, we said there is
16. The process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the various items of the statement of financial position and the income statement is known as what?
17. Horizontal analysis is otherwise known as .....
Use the information to answer question 19-20
In 1968, the foliowing Discriminant Function was developed by Altman:
Z = 1.2X1 +1.4X2 + 3.3X3 + 0.6X4 + 1.0X5
18. What does X1 measure?
19. What does X4 measure?
20. If Z > 2.99, the firm is said to be?
