Legal Aspects of Finance SCDL Solved Paper - 48

This solved paper of SCDL Legal Aspects of Finance of SCDL Pune has been contributed by XYZ
  

Multiple Choice Single Answer
Question			Conservative policy for determining the requirements of current assets is also known as :-
Correct Answer			Flexible policy
True/False
Question			Management of working capital refers to the management of total assets and liabilities of a company.
Correct Answer			FALSE
Multiple Choice Single Answer
Question		usually the `controlling block' tends to be between :-
Correct Answer		20 & 40 percent
Select The Blank
Question		Conglomerate mergers are also called ________.
Correct Answer		Concentric mergers
Multiple Choice Multiple Answer
Question		The main theories behind share repurchases are :-
Correct Answer		Dividend or personal taxation hypothesis , Leverage hypothesis , Information or signalling hypothesis
Multiple Choice Single Answer
Question		In value of assets method the following is also to be included as they are also of value to the company :-
Correct Answer		Non trading assets
Multiple Choice Multiple Answer
Question		Every business requires funds on a continual basis for expenses incurred on for :-
Correct Answer		Purchase of raw material , Manufacturing costs , Administration
True/False
Question		The scope of the data required relates to the scope of the activity model & processes under review.
Correct Answer		TRUE
Multiple Choice Single Answer
Question				Investment decisions are mainly concerned with :-
Correct Answer				Assets
True/False
Question				DCF is not a method used to calculate market value of a firm.
Correct Answer				FALSE
Multiple Choice Multiple Answer
Question				Debt reduces :-
Correct Answer				Agency cost of free cash flow , Commitment to pay in time to all lenders , Freedom of decisions
True/False
Question				Planning helps an acquiring firm to identify the units it should drop & it should add.
Correct Answer				TRUE
Select The Blank
Question				Non value added activities helps ________.
Correct Answer				To analyse the activities more carefully
True/False
Question				Usually only a single method is used for valuation of shares.
Correct Answer				FALSE
Select The Blank
Question				Combination of 2 or more companies into existing company is called ________.
Correct Answer				Absorption
Select The Blank
Question				________ is not a example of segment liability.
Correct Answer				Goodwill
True/False
Question				The accounting records serve as the major source of cost data.
Correct Answer				TRUE
Select The Blank
Question				AS 23 - Accounting for investments in associates in consolidated financial statements comes into effect in respect of accounting periods commencing on or after ________.
Correct Answer				01.04.2002
True/False
Question	The activity model is normally created by an activity Accountant.
Correct Answer	FALSE
True/False
Question	Organisational changes are similar to mission changes.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	Equity includes :-
Correct Answer	Development Rebate Reserve
Select The Blank
Question	A geographical segment cannot be ________.
Correct Answer	Countries in different zones
Multiple Choice Single Answer
Question	The Management of the Company may enter into a negotiated purchase, which is referred to as :-
Correct Answer	Greenfield

 Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct.