Finance Questions

Q:

Which cost is an example of a variable cost?

A) raw materials B) raw materials
C) labor D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:

Variable costs are expenses that vary in proportion to the amount of goods or services that a business produces. 

Examples of variable cost include labor, packaging and raw materials.

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Filed Under: Finance
Exam Prep: Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

What is the primary reason to issue stock?

Answer

 The primary reason to issue stock is to raise money to start and maintain an ongoing business.


Other Reasons::


The reasons that a company might want to raise money by issuing stock are:


 



  • To develop new products


 



  • To buy more advanced equipment


 



  • To pay for new buildings and inventories


 



  • To hire more employees


 



  • To provide for a merger or acquisition


 



  • To decrease debt


 



  • To give company owners greater flexibility


 



  • To place a value on the company.

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Subject: Finance Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

When referring to student loans, what is a grace period?

Answer

The grace period is in which time period students are not to be worried to repay the loans in that period.

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Subject: Finance Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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