Test 501 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Financial Management and Business Data AnalyticsTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Which of the following is considered the primary objective of financial management? Profit Maximization Wealth Maximization Sales Maximization Cost Minimization None 2. Which ratio is used to measure a company's ability to meet short-term obligations? Current Ratio Gross Profit Ratio Inventory Turnover Ratio None 3. Capital budgeting decisions mainly relate to: Managing working capital Long-term investment decisions Dividend policy decisions Capital structure decisions None 4. The cost of equity capital is calculated using which of the following methods? CAPM Net Present Value Profitability Index Payback Period None 5. Which of the following is not a type of financial risk? Market Risk Liquidity Risk Operational Risk Demand Risk None 6. The Weighted Average Cost of Capital (WACC) represents: The overall cost of a company's financing The overall cost of a company's financing The cost of debt The dividend payout ratio None 7. Which of the following is a measure of profitability? Quick Ratio Gross Profit Margin Inventory Turnover Gearing Ratio None 8. The internal rate of return (IRR) is used to: Determine the profitability of an investment Calculate depreciation Estimate the payback period Measure inventory levels None 9. What is the primary purpose of diversification? Increase returns Reduce risk Increase liquidity Minimize costs None 10. Which of the following statements is true about financial leverage? It reduces the variability of returns It increases the risk of insolvency It has no effect on profitability It always leads to higher returns None 11. Beta coefficient is used in which of the following models? Dividend Discount Model CAPM Arbitrage Pricing Model Black-Scholes Model None 12. Which of the following ratios is used to measure a company's efficiency in utilizing its assets? Current Ratio Debt-Equity Ratio Asset Turnover Ratio Gross Profit Ratio None 13. Payback period is the time required to: Recover the cost of an investment Generate profit Achieve break-even Measure total revenue None 14. Which of the following methods considers the time value of money? Payback Period Accounting Rate of Return Net Present Value None of the above None 15. Which one is not a component of working capital? Accounts Payable Accounts Receivable Inventory Fixed Assets None 16. Which ratio is called the acid-test ratio? Current Ratio Quick Ratio Debt Ratio Turnover Ratio None 17. Data analytics primarily involves which of the following? Data Entry Data Cleaning, Analysis, and Interpretation Printing Reports Network Security None 18. Which of the following is not an approach for business data analytics? Descriptive Analytics Predictive Analytics Passive Analytics Prescriptive Analytics None 19. The profitability index is useful for: Ranking investment projects Calculating tax liability Assessing inventory levels Monitoring cash flow None 20. The DuPont analysis decomposes return on equity (ROE) into which of the following components? Profitability, Asset Efficiency, and Financial Leverage Market Value, Debt, and Equity Revenue, Costs, and Profit Inventory, Liquidity, and Leverage None 21. Standard deviation is a measure of: Risk Return Liquidity Profitability None 22. Business analytics helps decision-makers by: Predicting future trends Making assumptions Reducing operational costs Implementing regulations None 23. In financial analysis, which technique is used to determine the value today of cash flows occurring in the future? Compounding Discounting Averaging Indexing None 24. Which of the following is a liquidity ratio? Debt Ratio Quick Ratio Gross Profit Ratio Price Earnings Ratio None 25. Operating leverage primarily affects: Cost of debt Variable costs Earnings before interest and tax (EBIT) Financial costs None 26. An increase in working capital means: A decrease in cash flows A decrease in inventory levels None of the above None 27. Which of the following is a type of data used in business analytics? Qualitative Data Structured Data Unstructured Data All of the above None 28. Data visualization tools help in: Data entry Presenting data in graphical format Network security Increasing expenses None 29. Which of the following is a method of evaluating capital budgeting projects? Payback Period Profitability Index Net Present Value All of the above None 30. Which technique is used for analyzing scenarios in business analytics? What-if Analysis Liquidity Analysis Financial Leverage Analysis Ratio Analysis None 31. Data normalization in business analytics means: Removing outliers Transforming data into a common format Creating random variables Removing duplicates None 32. Which of the following is used to represent categorical data? Histogram Bar Chart Scatter Plot Line Chart None 33. Which type of financial decision focuses on dividends and their payout ratio? Investment Decision Financing Decision Dividend Decision Capital Budgeting None 34. Scenario analysis involves which of the following? Changing one variable at a time Evaluating different scenarios Assessing project risks Calculating IRR None 35. The term 'Big Data' is characterized by: Volume, Variety, and Velocity Variance, Value, and Visualization Viability, Cost, and Risk Profitability, Growth, and Efficiency None 36. Which financial metric is often used to determine shareholder value? Earnings per Share (EPS) Quick Ratio Inventory Turnover Ratio Current Ratio None 37. Which of the following models is used to predict financial bankruptcy? CAPM Model Altman's Z Score Dividend Discount Model IRR Model None 38. Which tool helps in interpreting financial data graphically? Regression Analysis Data Visualization Tools Ratio Analysis Budgeting Tools None 39. Leverage ratios measure: Liquidity Profitability Profitability Efficiency in asset management None 40. Which of the following methods is used in predictive analytics? Descriptive Statistics Benchmarking What-if Analysis Benchmarking None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test.Look out for results and future opportunities.Stay Connected !! Time's upTime is Up!
