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Stock Valuation

Chapter 6: Stock Valuation

Short Question Answer 1. What are the characteristic features of preference share? Preferred stock is a hybrid security issued by companies. It is called hybrid security because it has some features common to debt and others similar to common stock. The rate of dividend to be paid on preferred stock is fixed and it generally […]

Chapter 5: Bond Valuation

Short Questions Answers 1. What are the key features of bond? Explain.  A bond is a long-term promissory note issued by corporations. It is called a promissory note because the issuer promises to pay a stated amount of interest regularly and repay the maturity value at the expiry of the maturity period. While issuing  bonds, […]

Chapter 10: Internal Analysis

Very Short Question Answer 1. Point out the areas of internal analysis. The areas of internal analysis are: Production and operations Marketing Finance Human resource 2. What do you mean by internal analysis? Internal analysis is an assessment of strengths and weaknesses of an organization. Organizations must exploit and expand on their strengths, as well […]

Chapter 9: Establishing Company Direction

Very Short Question Answer 1. Define vision and mission. Vision can be defined as the description of what an organization wants to be in future. It provides direction to the organization. Through vision, organization can focus on achieving the desired goals. The vision statement of McDonald’s is to be the world’s best quick service restaurant. […]

Chapter 6 :Exempt Amounts, Concessions, Tax Rates And Withholding Payments

Very Short Question Answer Briefly state any two tax-exempt amounts. Two tax-exempt amounts are: Amount received by a person entitled to tax exemption privileges under a bilateral or a multilateral treaty or agreement concluded between the Government of Nepal and a foreign country or an international organization. Amount received by an individual from employment in […]

Chapter 5: Capital and Revenue

Very Short Question Answer State the expenses that are treated as capital expenditure according to Income Tax Act, 2058. Income Tax Act, 2058 has treated the following expenses as capital expenditure: Expenditure incurred for feasibility study, exploration and development of natural resources. Expenditure incurred for obtaining assets with useful life of more than 12 months. […]