Financial Management and Planning-Working Capital Management (CBSE-NET (UGC) Tourism Administration (Paper-II & Paper-III)): Questions 16 - 20 of 22

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Question number: 16

» Financial Management and Planning » Working Capital Management » Inventory Management

MCQ▾

Question

Which one of the following is the objective of inventory management?

Choices

Choice (4) Response

a.

Over investment in an organization

b.

Maintain the optimum level of inventory investment

c.

Under investment in an organization

d.

Question does not provide sufficient data or is vague

Question number: 17

» Financial Management and Planning » Working Capital Management » Financing Current Assets

MCQ▾

Question

“Current assets exceed current liabilities” it is?

Choices

Choice (4) Response

a.

Gross Working Capital

b.

Positive Net Working Capital

c.

Negative Net Working Capital

d.

Question does not provide sufficient data or is vague

Question number: 18

» Financial Management and Planning » Working Capital Management » Financing Current Assets

MCQ▾

Question

The difference between the current assets and current liabilities is called?

Choices

Choice (4) Response

a.

Gross Working Capital

b.

Net Working Capital

c.

All of the above

d.

None of the above

Question number: 19

» Financial Management and Planning » Working Capital Management » Receivables Management

MCQ▾

Question

Which of the following is the characteristic of receivables arising out of track credit?

Choices

Choice (4) Response

a.

It involves an element of risk

b.

It implies the projection of the transaction in the future

c.

Receivable is based on economic value

d.

All a. , b. and c. are correct

Question number: 20

» Financial Management and Planning » Working Capital Management » Inventory Management

MCQ▾

Question

Which one of the following is the reason behind holding inventories?

Choices

Choice (4) Response

a.

For supplying finished goods on a regular basis

b.

To facilitate the production in its factory

c.

Company may purchase raw material in bulk to get discount

d.

All a. , b. and c. are correct

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