Financial Management Multiple Choice Question MCQ Part 1
Categories: Finance Multiple Choice Question
Ques. Investment can be defined as A) Person’s dedication to purchasing a house or flat B) Use of capital on assets to receive returns C) Usage of money on a production process of products and services D) Net additions made to the nation’s capital stocks Answer: B Ques. The concept of Financial management is A) Profit maximization B) All features of obtaining and using financial resources for company operations C) Organization of funds D) Effective Management of every company Answer: B Ques. What is the primary goal of financial management? A) To minimise the risk B) To maximise the owner’s wealth C) To maximise the return D) To raise profit Answer: B Ques. GST is a consumption of goods and service tax based on. A) Development B) Dividend C) Duration D) Destination Answer: D Ques. The finance manager is accountable for. A) Earning capital assets of the company B) Effective management of a fund C) Arrangement of financial resources D) Proper utilisation of funds Answer: C Ques. The market value of the shares is decided by A) The investment market B) The government C) Shareholders D) The respective companies Answer: A Ques. The capital budget is associated with. A) Long terms and short terms assets B) Fixed assets C) Long terms assets D) Short term assets Answer: C Ques. CAPM stands for. A) Capital asset pricing model. B) Capital amount printing model. C) Capital amount pricing model. D) Capital asset printing model. Answer: A Ques. What does financial leverage measure? A) No change with EBIT and EPS B) The sensibility of EBIT with % change with respect to output C) The sensibility of EPS w.r.t % change in the EBIT level D) % variation in the level of production Answer: C Ques. From the below-mentioned items which are financial assets? A) Machines B) Bonds C) Stocks D) B and C Answer: D Ques. What does investment stand for? A) approximate increase in the national stocks B) the application of funds for the products and services employed for the production process C) use of funds for the assets with the purpose to earn returns applying money to buy a flat or a house Answer: C Ques. The ultimate concern of Financial Management is: A) to arrange the funds B) effective management of all the business C) receiving the maximum profit to acquire and utilize every aspect of financial resources in order to maintain the firm activities Answer: D