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Corporate Finance Practice Test
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Corporate finance is the area of finance that deals with the sources of funding, and the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. (Source: Wikipedia)

Topics include include raising capital, capital budgeting, risk management, corporate governance and international financial management.

Corporate Finance Practice Test
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25 Questions

1. Medium-term notes (MTNs) have maturities that range up to
2. The required rate of return for an investment project should ____________.
3. The type of lease that includes a third party, a lender, is called a(n)
4. Arbitrage is the level processing technique introduced in ____________.
5. Good inventory management is good _____ management
6. Working capital management is managing ____________.
7. A way to analyze whether debt or lease financing would be preferable is to:
8. The cash management refers to management of ___.
9. Depreciation is include in costs in case of ____________.
10. A fixed rate of ____________is payable on debentures.
11. Capital budgeting is related to ____________.
12. While calculating the weighted average cost of capital, market value weights are preferred because _________________.
13. The arbitrary process is the behavioral foundation for the ____________.
14. The policy concerning quarters of profit to be distributed as dividend is termed as ____________.
15. Payback period is superior to other methods, if the objective of the investor is to ____________.
16. Cost of equity capital is ____________.
17. Which of the following ratios is not affected by the financial structure and the tax rate of a company?
18. Operating Leverage Measures the responsiveness of earnings per share to variability in _______
19. Which of the following is not an objective of financial management?
20. While calculating weighted average cost of capital _____________.
21. Future value interest factor takes ____________.
22. Variable cost per unit ____________.
23. Which of the following is not a feature of an optimal capital structure?
24. In his traditional role the finance manager is responsible for ___________.
25. Financial leverage is also known as ____________.