Which of the following statements is incorrect?
Debt creditors are paid off first, and then, the equity owners are paid off.
Debt creditor bears less risk in comparison to equity owner.
Debt creditors share the profit earned by the concerned project.
Debt financing does not provide ownership rights.
At the optimal consumption point
The slope of the budget line is more than the marginal rate of substitution.
The consumer does not consume his whole income.
The budget line is tangent to the indifference curve.
The marginal utility of the goods is the same.
What is the potential risk of short selling?
Limited loss potential
Unlimited profit potential
Unlimited loss potential
No financial risk
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The IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 16 Mar 2025, in the January 2025 term: 25 questions for 100 marks in 120 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.
| Feature | Corporate Finance Quiz 2 16 Mar 2025 at a glance |
|---|---|
| Term | January 2025 term |
| Subject | Corporate Finance |
| Course code | BSMS3034 |
| Questions | 25 |
| Marks | 100 |
| Duration | 120 min |
| MCQ | 25 |
| Official paper | IIT M DEGREE AN EXAM QDB2 16 Mar 2025 |
| Negative marking | No negative marking. |
| Updated |
