Which among the following is primarily NOT a finance function?
(a) Diversification decisions
(b) Financing decisions
(c) Dividend decisions
(d) Investment decisions
Which of the following is primarily NOT a key activity performed by a Finance Manager?
(a) Making Retrenchment Strategies
(b) Making Investment Decisions
(c) Performing Financial Planning
(d) Doing Financial Analysis
The capital structure decision mainly refers to the decision of
(a) Investments
(b) Financing
(c) Dividend policy
(d) Working capital
Internal sources of capital are those that are
(a) Generated through outsiders such as suppliers
(b) Generated through loans from commercial banks
(c) Generated through issue of shares
(d) Generated within the business
Which one is not the Merits of Retained Earnings
(a) Retained earnings is a permanent source of funds available to an organisation.
(b) It is an uncertain source of funds as the profits of business keep fluctuating .
(c) It does not Involve any explicit cost in the form of interest, or floatation cost.
(d) There is a greater degree of operational freedom and flexibility as the funds are generated internally.
Which of the following is not Sources of long Term Finance
(a) Equity Shares
(b) Retained earnings
(C) Preference shares
(d) Factoring
Funds required for purchasing current assets is an example of
(a) Fixed capital requirement
(b) Ploughing back of profits
(c) Working capital requirement
(d) Lease financing
A decision to acquire a new and modern plant to upgrade an old one is a
(a) Financing decision
(b) Working capital decision
(c) Investment decision
(d) None of the above
Determining optimum capital structure is-
(a) An investment decision
(b) A financing decision
(c) A dividend decision
(d) A liquidity decision
Financial decisions of the firm are guided by
(a) Firm’s wealth
(b) Risk-return trade -off
(c) Retention ratio
(d) Financial leverage
Profit Maximization is the main objective of business because:
(a) Profit acts as a measure of efficiency and
(b) It serves as a protection against risk.
(c) Both
(d) none
“Shareholder wealth” in a firm is represented by:
(a) The number of people employed in the firm.
(b) The book value of the firm’s assets less the book value of its liabilities
(c) The amount of salary paid to its employees.
(d) The market price per share of the firm’s common stock.
Working Capital Management refers to a Trade-off between _____________and Profitability.
(a) Liquidity
(b) Risk
(c) Both of the above
(d) None of the above
Which one of the following is a medium term source?
(a) Public Deposits
(b) Lease Financing
(c) Euro Debt Issue
(d) All of the above
Select the correct statement about Profit Maximisation-
(a) It ignores the timing of returns
(b) It is quite accurate
(c) It takes in to account risk
(d) It does not assume perfect competition
Objective of Financial Management is :
(a) Management of Liquidity,
(b) Maximization of Profit
(c) Maximization of Shareholders’ Wealth,
(d) Management if Fixed Assets
In Financial Management, cash flow is same thing as :
(a) Cash Profit,
(b) Profit before Tax,
(c) Operating Profit,
(d) None of the above,
What is ignored in Principle of Profit Maximization?
(a) Time Value of Money,
(b) Risk,
(c) Wealth Creation,
(d) All of the above
Which of the following are two basic concept of financial management?
(a) Costs and Expenses,
(b) Risk and Return,
(c) Debit and Credit,
(d) Receipt and Payment,
In Financial Management, the term risk refers to :
(a) Chances of Incurring Losses,
(b) Variability of Future Outcome,
(c) Chances of no Return,
(d) None of the above
Financial Management refers to :
(a) Management of Current Assets,
(b) Management of All Assets,
(c) Financial Decision-making,
(d) Management of Liability,
Which of the following is included in financial decision making?
(a) Investment Decision,
(b) Financing Decision,
(c) Dividend Decision,
(d) All of the above.
Which of the following is considered as complementary to Financial Management?
(a) Cost Accounting,
(b) Management Accounting,
(c) Financial Accounting,
(d) Corporate Accounting.
Maximization of Wealth of Shareholders is reflected in :
(a) Sales Maximization,
(b) No. of Shareholders,
(c) Market Price of Equity Shares,
(d) SENSEX.
Which is not a part of Investment Decision in Financial Management?
(a) Dividend Payout Decision,
(b) Capital Budgeting Decision,
(c) Working Capital Management,
(d) Credit Policy.
Focal Point in Financial Management is :
(a) Increasing Sales of the firm,
(b) Creating Shareholders’ value,
(c) Increasing profit,
(d) Increasing Market Share.
In a Public Sector Company, the financial goal of the firm is to :
(a) Maximize the Market Price of Equity,
(b) Maximize the Dividends to Govt.,
(c) Maximize the PV of Equity Returns,
(d) None of the above
Maximizing the wealth of the shareholders is reflected in :
(a) Maximizing MP of Equity Shares,
(b) Maximizing Cash Balance,
(c) Maximizing Retained Earnings,
(d) Maximizing Issued Capital.
Market value of the firm is a result of :
(a) Investment Decision,
(b) Financial Decision,
(c) Working Capital Management,
(d) Risk-Return Trade off.
Dividend decision is related to :
(a) Right Issue of share,
(b) Reinvestment Requirement,
(c) Cash Flow Statement,
(d) None of the above.