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Saturday, February 27, 2016

Principles of Finance's some important short Questions and Answer

1. What is fainance?
Ans. Fainance is the art and science of meanging money.
2. what is business finance?
Ans. Business finance is that business activity which is concerned with the acquisition and conversation of capital funds in meeting the financial need and overall of objective of business enterprise.
3.What is wealth maximization?
Ans. Wealth maximization means the process of maximization value shares and net value of firm.
4. What is financial market?
Ans. Financial market are forms in which supplies of funds and demanders of funds can translated in business directly.
5. What is EPS?
Ans. EPS means Earnings per share. we determine Earning Per Share (EPS) dividing Net profit by the number shareholders i, e, EPS = EAT ÷Ns.
6. What is IPO?
Ans. IPO means Initial public offer. After initiating when a company offers to sell it's first shares, then it's called initial public offer.
7. What is bond or debenture?
Ans. A bond is a long term debt instrument issued by corruption or government.
8. What is treasurer?
Ans. Treasurer is the chief manager of a firm who is responsible for a firm's financial activity especially found collection, capital decisions, cash credit, position fund and foreign exchange.
8. What is meant by risk?
Ans. Risk is defined as the variability of possible return from a project.
9. What is capital?
And. The long time fund of a firm is called capital.
10. What is authorized shares?
Ans. The share that are allowed to issue by corporate charter are called  authorized shares.
11.What is authorized capital?
Ans. The highest amount of capital of company expressed in it's memorandum of association is called authorized capital.
12. What is zero-growth model?
Ans. Zero-growth is a dividend valuation approach, that assumes, the amount of dividend is constant and non-growing stream.
13.What is book value?
Ans. The amount per share of common stock that would be received if all of the firm's assets were sold for their exact book (accounting) value and the proceeds remaining after paying all liabilities (including preferred stock) were dividend among the ordinary stockholders.

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