Business and Finance MCQs Test 08 Preparation Online Shani Malik — May 21, 2018 in Economics • add comment Business and Finance MCQs Test 08 Preparation Online 1. Absorption is said to take place when:A. Two or more companies are dissolved to form a few companyB. Two companies decide for virtual integration of their operationsC. Two or more companies dissolve to be taken over by a existing companyD. A company is formed to take over another company Loading... 2. For a company to carry out capital reduction, permission is required from the:A. Controller of Capital Issues B. Competent CourtC. Company Law BoardD. Board of Directors Loading... 3. For calculating market value using P/E ratios, it is necessary to know:A. Market price of the shareB. Earnings per share and market price of the shareC. Average profits D. The rate of dividend Loading... 4. Which of the following is not concerned with the valuation of goodwill ?A. Earning capacity methodB. Super profits methodC. Average profits methodD. Net as sets method Loading... 5. When two or more companies dissolve to form a new company, the process is known as:A. AbsorptionB. AmalgamationC. CombinationD. Reconstruction Loading... 6. Any balance in the capital reduction account after writing off lost capital is transferred to:A. Capital redemption reserveB. General reserveC. Capital reserveD. Debenture redemption reserve Loading... 7. Dividends are usually paid on the:A. Subscribed capitalB. Nominal capitalC. Called-up capitalD. Paid-up capital Loading... 8. In a scheme of reorganization, the amount of shares surrendered by shareholders is transferred to the:A. Capital sacrificed accountB. Capital reduction accountC. Capital reorganization accountD. Shares surrendered account Loading... 9. The relationship between normal rate of return and P/E ratio is:A. None of the aboveB. InverseC. DirectD. Irregular Loading... 10. Advance payment of tax should be shown on the:A. Liabilities side of a balance sheetB. Debit side of a profit and loss accountC. Credit side of a profit and loss accountD. Assets side of a balance sheet Loading... Loading... Related NTS Results Post:Business and Finance MCQs Test 07 Preparation OnlineBusiness and Finance MCQs Test 03 Preparation OnlineBusiness and Finance MCQs Test 01 Preparation OnlineBusiness and Finance MCQs Test 06 Preparation OnlineBusiness and Finance MCQs Test 04 Preparation OnlineBusiness and Finance MCQs Test 05 Preparation OnlineBusiness and Finance MCQs Test 02 Preparation OnlinePublic Finance Test 06 Mcqs Preparation Online