Job Exams Hero

Business & Finance MCQs

Prepare for competitive exams with our comprehensive Business & Finance MCQs, designed for students of commerce and candidates appearing in recruitment tests. These multiple-choice questions cover financial management, accounting, auditing, business law, corporate governance, investment analysis, banking, cost of capital, stock markets, marketing, human resource management, and business communication. Highly beneficial for aspirants of PPSC, FPSC, CSS, NTS, SPSC, BPSC, KPSC, ETEA, AJKPSC, as well as banking sector exams, commerce lecturer tests, and business-related university assessments (B.Com, M.Com, MBA, ACCA, CA).

Browse Categories
Quick Results 0 found

Question Coming Soon!

"" isn't in our database yet, but we're adding new questions daily.

1 Finance MCQs

If a company has a net income of $125 and total assets of $1,096, what is the Return on Equity (ROE)?

  • 0.11%
  • 11.40%
  • 0.12 times
  • 12%
0 Comments
Correct Answer: B. 11.40%

Explanation:

The correct option is this 11.40%.


In Finance MCQs, Return on Equity ... Read More Details

2 Finance MCQs

If a company has a price per share of $30 and earnings per share (EPS) of $3.5, what is the Price-to-Earnings (P/E) ratio?

  • 8.57 times
  • 8.57%
  • 0.11 times
  • 11%
0 Comments
Correct Answer: B. 8.57%

Explanation:

The correct option is this 8.57 times.


In Finance MCQs, the Price-to-Earnings ... Read More Details

3 Finance MCQs

Dividing the price per share by the cash flow per share of a company gives which of the following?

  • Dividend to stock ratio
  • Sales to growth ratio
  • Cash flow to price ratio
  • Price to cash flow ratio
0 Comments
Correct Answer: D. Price to cash flow ratio

Explanation:

The correct option is this Price to Cash Flow (P/CF) ratio.


In ... Read More Details

4 Finance MCQs

Dividing a company’s total assets by its common equity calculates which of the following?

  • Equity multiplier
  • Graphical multiplier
  • Turnover multiplier
  • Stock multiplier
0 Comments
Correct Answer: A. Equity multiplier

Explanation:

The correct option is this Equity multiplier.


In Finance MCQs, the equity ... Read More Details

5 Finance MCQs

Dividing the price per share by the earnings per share (EPS) of a company calculates which of the following?

  • Price earnings ratio
  • Earning price ratio
  • Pricing ratio
  • Earning ratio
0 Comments
Correct Answer: A. Price earnings ratio

Explanation:

The correct option is this Price Earnings (P/E) ratio.


In Finance MCQs, ... Read More Details

6 Finance MCQs

Low earning power combined with high interest costs typically leads to which of the following?

  • High return on equity
  • High return on assets
  • Low return on assets
  • Low return on equity
0 Comments
Correct Answer: D. Low return on equity

Explanation:

The correct option is this Low return on equity (ROE).


In Finance ... Read More Details

7 Finance MCQs

For mutually exclusive projects that differ in scale or timing, which method should be used to select the best project?

  • External return method
  • Net present value method
  • Net future value method
  • Internal return method
0 Comments
Correct Answer: B. Net present value method

Explanation:

The correct option is this Net Present Value (NPV) method.


In Finance ... Read More Details

8 Finance MCQs

The product of Profit Margin, Asset Turnover, and Equity Multiplier is used to calculate which of the following?

  • Return on turnover
  • Return on stock
  • Return on assets
  • Return on equity
0 Comments
Correct Answer: D. Return on equity

Explanation:

The correct option is this Return on equity (ROE).


In Finance MCQs, ... Read More Details

9 Finance MCQs

The payback period calculated using discounted cash flows at a project’s cost of capital is called which of the following?

  • Discounted payback period
  • Discounted rate of return
  • Discounted cash flows
  • Discounted project cost
0 Comments
Correct Answer: A. Discounted payback period

Explanation:

The correct option is this Discounted payback period.


In Finance MCQs, the ... Read More Details

10 Finance MCQs

Ratios that relate a company’s stock price to its book value, cash flow, and earnings are called which of the following?

  • Return ratios
  • Market value ratios
  • Marginal ratios
  • Equity ratios
0 Comments
Correct Answer: B. Market value ratios

Explanation:

The correct option is this Market value ratios.


In Finance MCQs, the ... Read More Details