Financial Management

✅ The correct answer is A.
Number of shares outstanding if it is divided by net income for using to calculate earning per share. Earnings per share or EPS is an important financial measure, which indicates the profitability of a company. It is calculated by dividing the company’s net income with its total number of outstanding shares.

✅ The correct answer is C.
Other factors held constant, greater project liquidity is because of shorter payback period. The payback period is the cost of the investment divided by the annual cash flow. The shorter the payback, the more desirable the investment.

✅ The correct answer is B.
Correct measure of risk of stock is called beta. The beta of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.

✅ The correct answer is D.
Securities with less predictable prices and have longer maturity time is considered as short-term investments. Short-term investments are designed to provide considerable returns in a short period of time, which could be a few months or even a year.

✅ The correct answer is A.
Net working capital is the aggregate amount of all current assets and current liabilities. It is used to measure the short-term liquidity of a business, and can also be used to obtain a general impression of the ability of company management to utilize assets in an efficient manner.

✅ The correct answer is A.
An unlimited liability for business debts and less capital for growth are limitations of proprietorship. Since the owner takes all the profits, he must also accept full personal responsibility for all the losses, even to the extent of his personal possessions.

✅ The correct answer is A.
FV = PV ( 1 + r/100 )ⁿ
= 10000 ( 1 + 10/100)⁵
= Rs 16,105.14

✅ The correct answer is A.
Market risk and diversifiable risk are two components of stock’s risk. Risk in stock and bond investments is all about what might cause you to lose money on those investments.

✅ The correct answer is B.

✅ The correct answer is B.
All partners have limited liability in limited liability partnership. LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.