Practice Library
All MCQs
Browse exam-wise, subject-wise, and country-wise MCQs with explanations.
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Correct Answer: A. A sustainable advantage depends on valuable capabilities that competitors cannot easily match
Explanation:
Strategic advantage reflects differentiated resources, positioning and the difficulty of imitation.
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Correct Answer: B. Internal control provides reasonable, not absolute, assurance over objectives
Explanation:
Controls reduce risk but face limitations such as judgement, collusion, override and cost-benefit constraints.
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Correct Answer: D. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
Correct Answer: 4215.13
Explanation:
PV=5950/(1+0.09)^4=4215.13.
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Correct Answer: A. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
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Correct Answer: D. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
Correct Answer: 5471.7
Explanation:
PV=5800/(1+0.06)^1=5471.70.
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Correct Answer: A. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
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Correct Answer: D. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
Correct Answer: 4843.96
Explanation:
PV=5650/(1+0.08)^2=4843.96.
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Correct Answer: A. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
Choose an option to check your answer.
Correct Answer: D. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.