Financial Management

Unit1 - 4 Mark Quiz Questions

1.Financial functions relate to _____decision

a. Inversment , Financing , Cash

b. None
c. Financing , Profit , Cost

d. Financing, Invesment, Dividend

2.Formulation of inventory policy is an important element of

a. Safety
b. solvency
c. Profitability

d. Liquidity

3.Given dividend is 12% on paid up value tax rate is 30%, Dividend tax is 10%, a
company pays Rs. 12 on, Rs. 100 as dividend the profit tax is

a. Rs. 19
b. None
c. Rs. 18
d. Rs. 20

4.Maximizing the price of the stock is equiralent to _____

a. maximization of stockholder wealth

b. Maximization of accounting profits
c. Maximization of economic revenue
d. Maximization of bond holder wealth
5.Obtaining finance is an important function of

a. Owner
b. Shareholder
c. None

d. Treasurer

6.Profit fluctuations arised due to.

a. friends risk
b. None
c. family risk

d. Business risk

7.The head of the finance function is usually

a. The treasurer
b. The finance manager
c. The controller

d. The vice president of finance

8.The_______has prime responsibility for those areas that one usually associate with
accounting

a. Financial manager
b. Treasurer

c. Controller
d. Director
9.Two critical issue to be taken note of under invesment decisions are

a. Expired profitabily and cost of capital

b. Expected profitabily and rate of return

c. Both A and b
d. None
10.Two versions of goals are

a. Cash and profit maximization

b. Profit and wealth maximization

c. None
d. Profit and cash maximization

11.Wealth maximization is based on.

a. None
b. Cash flows and human value
c. Cash flows and money value

d. Cash flows and time value

12.Which goal gets first priority?

a. Profit maximization
b. Both A and B
c. Wealth maximization
d. Health maximization

13._____relates to the acquisition of funds at the least cost

a. Functional decisions

b. Financing decisions
c. Formal decisions
d. Factional decisions
14._______lead to invesment in real asstes

a. Increment decisions
b. Invesment decisions
c. Involving decisions
d. Insalment decisions