Tag: organisation of commerce and management

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Questions Related to organisation of commerce and management

Multiple choice organisation of commerce and management business capital/finance finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

Interest rate in cash credit is normally ______ bank credit account.

  1. higher than

  2. same

  3. lower than

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest rate in cash credit is normally lower than bank credit account. Cash credit is a type of borrowing which can be obtained from the bank savings account without having credit balance, whereas bank credit refers to a loan which is issued by the banking company and which are to be repaid by the borrower with a higher interest rate.

Multiple choice organisation of commerce and management business capital/finance finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

Cash credit is normally given on security of stock, debtors etc. whereas bank credit is normally given on security of a fixed asset.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cash credit is normally given on security of stock, debtors etc. whereas bank credit is normally given on security of a fixed asset- this is a rue statement.Cash credit is a type of borrowing which can be obtained from the bank savings account without having credit balance.

Multiple choice organisation of commerce and management business capital/finance finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

Factor(s) to consider before choosing trade credit or bank credit is/are _______.

  1. Rate of interest

  2. Processing fees

  3. Foreclosure charges

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
 Trade credit is provided by the suppliers whereas bank credit is provided by the banking companies. Factors to consider before choosing trade credit or bank credit are:a) Rate of interest
b) Processing fees
c) Foreclosure charges.
Multiple choice organisation of commerce and management business capital/finance finance and accounts meaning and functions of finance and accounts department nature, need and significance of business finance

The Headquarters of World Bank is situated at ______________.

  1. London

  2. Washington DC

  3. New York

  4. Geneva
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The World Bank was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF).

 The World Bank and the IMF are both based in Washington, D.C., and work closely with each other.

The World Bank is an international organization dedicated to providing financing, advice and research to developing nations to aid their economic advancement. 

Multiple choice organisation of commerce and management sources of business finance - 2 equity and preference shares equity shares and preference shares non-institutional sources - long-term

A project has an equity beta of 1.2 and debt beta of 0. This project is finance by combination of $30\%$ debt and $70\%$ equity, then project beta is _______.

  1. 0

  2. 1

  3. 0.84

  4. 0.64
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\beta _p$ = $\frac{{\beta equity X E}}{D + E}$ + $\frac{{\beta debt X D}}{D + E}$.