61. Which of the following is the most important objective of corporate finance?
(A) Profit maximization
(B) Fund Flow generation
(C) Cash Flow generation
(D) Wealth Maximization
Answer:
(D) Wealth Maximization
Explanation:
Modern corporate finance dictates that the primary and overarching objective of a firm’s financial management is maximizing shareholder wealth (the value of the firm’s stock).
62. The group of market participants that collectively facilitate interaction between investors and issuers is known as:
(A) Custodians
(B) Regulators
(C) Bankers
(D) Intermediaries
Answer:
(D) Intermediaries
Explanation:
Financial intermediaries (such as brokers, exchanges, and investment banks) act as the middlemen connecting those who need capital (issuers) with those who have it (investors).
63. When an issuer makes an issue of securities to a select group of persons and which is neither a rights issue nor a public issue, it is called:
(A) Private placement
(B) IPO
(C) Preferential issue
(D) FPO
Answer:
(A) Private placement
Explanation:
A private placement is a funding round of securities which are sold not through a public offering, but rather through a private offering to a small number of chosen investors.
64. Investors are free to buy and sell number of units at any point of time in case of ________ mutual funds.
(A) Close ended
(B) Open ended (
C) Private
(D) Debt
Answer:
(B) Open ended
Explanation:
Open-ended mutual funds continuously issue and redeem units based on investor demand at the daily Net Asset Value (NAV).
65. Which of the following is India’s premier export finance institution?
(A) SBI
(B) IDBI Bank
(C) EXIM bank
(D) RBI
Answer:
(C) EXIM bank
Explanation:
The Export-Import Bank of India (EXIM Bank) was established in 1982 specifically to serve as the premier export finance institution supporting India’s international trade.
