Financial Management Set 1
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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 1
Q1 | All business need to have which fundamental essential element
- human resources
- balance sheet
- labour team
- stategy
Q2 | Which of the following variable is not known in IRR?
- discount rate
- terminal inflows
- life of the project
- intitial cash flows
Q3 | Acccording to the traditional approach what is the effect of increase in degree of leverage on the valuation of the firm
- remains unaffected
- increase first and then decreases
- decreases
- increases
Q4 | The maximum expenses that an equity scheme charge to an investor is ____________
- 0.025
- 0.0225
- 0.0175
- 0.02
Q5 | The bonds with shorter maturity will have ______ duration
- moderate
- higher
- lower
- average
Q6 | Relaxed or libral credit implies -credit to customers
- higher
- both a and b
- lower
- neither a nor b
Q7 | Objectives of financial planning are
- determining capital structure
- framing loan policies
- determining cash requirement
- determining finance ratio
Q8 | PI of project is the ratio of present value of inflows to-
- total outflows
- initial cost
- pv of outflows
- total cash inflows
Q9 | Bird in hand - argument is given by
- residuals theory
- walter model
- mm model
- gordon\s model
Q10 | When the required rate of return is less than the coupon rate the premium on the bond-
- remains same
- variable
- declines
- increases
Q11 | Evaluation of firms credit policy can be done by computing expected ___________ from it
- net benefit
- net loss
- net profit
- net cost
Q12 | All listed and traded securities are valued at _______
- book value
- cost
- cost+ profit
- closing market price
Q13 | Financial manager would not supervise on the following area
- cost analyst
- working capital advisor
- financial accounting and auditing
- cash flow advisor
Q14 | In case of risky projects the required rate of return would generally be-
- neutral
- lower
- moderate
- higher
Q15 | Residuals theory argues that dividend is as -
- passive decision
- irrelevant decision
- active decision
- relevant decision
Q16 | Investors subscriptions are accounted as _____________
- cash
- deposits
- liabilities
- unit capital
Q17 | Face value is the value stated on the face of the bond and is known as-
- redemption value
- per value
- intrinsic value
- market value
Q18 | _________Policy refers to the procedure follow to collect accounts receivable after the expiry of the credit period
- risk
- collection
- profit
- manangment
Q19 | Financial mananger would play the role of __________ in area of finance
- budget analyst
- cash analyst
- cash flow examiners
- persoanl financial advisors
Q20 | Accountng rate of return is based on _____________
- life of the project
- average expected profit
- average cash profit
- average past profit
Q21 | MM model of dividend irrelevance uses arbitrage between-
- dividend and capital issue
- dividend and bonus
- profit and investment
- none of the above
Q22 | __________ Can be traded thourgh out the trading day at market prices
- mmmf
- debt fund
- etf
- equity fund
Q23 | Intrinsic value of a bond is ______________ vlaue of the all future cash flows
- past
- present
- estimated
- future
Q24 | ______ Means the basic criteria for the extension of credit to customers
- credit standards
- finnacial position
- cash standards
- living standards
Q25 | The Presence of Taxes in capital budgeting analysis will cause ___________
- the arr to remain same
- the npv to increase
- the irr to decrease
- all of the above