Tag: role of marketing

Questions Related to role of marketing

Solomon concludes that

  1. The total market value of a firm and the cost of capital are independent of the capital strucure

  2. There is a definite impact on a firm's total market value when leverage is increased

  3. There is a definite impact on a firm's total market value when leverage is decreased

  4. None of the above


Correct Option: B

Which of the following approachesĀ represent the effect of leverage on the cost of capital and the market value of a firm?

  1. Modigliani-Miller approach

  2. Ezra Solomon's approach

  3. Gordon Donaldson's approach

  4. Both (a) and (b)


Correct Option: D

Which of the following is not an aspect of product mix?

  1. Transitivity of product mix

  2. Consistency of product mix

  3. Breadth of product mix

  4. Depth of product mix


Correct Option: A

What are the factors affecting price decision?

  1. Cost of production and utility to the buyer

  2. Competition and distribution strategy

  3. Promotion strategy and buying habits

  4. All the above


Correct Option: D

In a market with a limited number of buyers, the pricing policy is dependent on.

  1. Stable pricing

  2. Flexible pricing

  3. The demand for his buyer's products

  4. The buyer's cost-structure


Correct Option: C

The basic assumptions of CAP< are
I. The efficiency of the security markets
II. Investor preferences
III. Restriction on investments
IV Single investor can affect market prices
Of thes:

  1. I, III, IV are correct

  2. II, III and IV are correct

  3. I and II are correct

  4. All are correct


Correct Option: C