Financial Management Set 22
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This set of Financial Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 22
Q1 | Which is the limitation of traditional approach of financial management
- Ignores allocation of resources
- One sided approach
- More emphasis on long term problems
- All of these
Q2 | The finance function is/are ----------------------
- Determination of financial requirement of the firm
- Obtaining necessary finance from the appropriate sources at minimum possible cost
- The allocation of finance in different assets
- All of these
Q3 | Financial management is a part of ---------------------
- Financial accounting
- Business management
- Accounting
- Tax law
Q4 | The financial management is responsible for the
- Controlling of the Organization
- Organizing trading programs
- Recording the transaction
- Finance function of the firm
Q5 | Financial management includes -------------------
- Measurement of performance
- Finance function
- Financial resources
- All of these
Q6 | Profit maximization includes ---------------------
- It is indicator of economic efficiency
- Source of incentive
- Maximization of social benefit
- Measurement of success of business decisions
Q7 | Function of finance officers includes -----------------------
- Continuous credit
- Co-ordination in fund
- Preparation of cost account
- Adequate liquidity
Q8 | The term value implies the ------------
- Task of estimating the worth of an asset
- Task of estimating the worth of a security
- Task of estimating the value of a business
- All of these
Q9 | Which is a type of value
- Book value
- Retailer or wholesaler value
- Plant value
- Domestic value
Q10 | Which is the approach of valuation
- Asset based approach to valuation
- Earnings based approach to valuation
- Market value based approach to valuation
- All f these
Q11 | Total assets – Total external liabilities equal to ---------------------
- Net asset
- Net liabilities
- Net cost
- Net depreciation
Q12 | The arrangement of working capital and current assets can be done only by -------------------
- Short term sources
- Long term sources
- Cost of capital
- Financial plan
Q13 | Which is the source of short term
- Trade credit
- Short term bank finance
- Public deposits
- All of these
Q14 | Which is the type of trade credit
- Open account
- Bills of exchange
- Promissory note
- All of these
Q15 | Which is the form of credit
- Overdraft
- Cash credit
- Discounting of trade bills
- Loans and advances
Q16 | Which is the characteristics of share capital
- Getting permanent capital
- Payment of dividend is not compulsory
- No mortgage of property
- Limited liability
Q17 | The ownership capital of Joint Stock Companies is dividend in its --------------
- Equity shares
- Debentures
- Bonds
- Debentures and preference shares
Q18 | The payment of dividend is not compulsory on ------------------
- Equity share capital and preference share capital
- Bonds
- Debentures
- Share capital
Q19 | The capital raised through equity share is ---------- for the company
- Floating capital
- Variable capital
- Temporary capital
- Permanent or fixed capital
Q20 | The control and management of the company is in the hands of ----
- Debenture holders
- Bondholders
- Equity shareholders
- Employees
Q21 | Who have the last right on the company assets
- Bondholders
- Equity shareholders
- Debenture holders
- Preference shareholders
Q22 | The equity shareholders are owners of ---------------------
- Residual income of the company
- Cost of asset
- Limited liability
- Cost of capital
Q23 | Which is the advantage of the share capital
- Permanent capital by sharing risk
- No fixed burden of dividend by all of these
- All of these
- None of these
Q24 | When the expansion of business and income is there, then the market value increases which result in ------------------
- Capital gain by capital loss
- Capital expense
- Reserves
- None of these
Q25 | If the company announces dividend then it is necessary to pay if
- Within a certain time
- Within five years
- Within six years
- Within seven years