Financial Management Set 1

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This set of Educational Planning and Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 1

Q1 | Educational needs are related to the -
  • size of the population
  • social change
  • economic and political development
  • all the above
Q2 | Sound financial planning includes –
  • decisions about revenue, cost and economy
  • budget administration
  • financial relationships among various agencies
  • all the above
Q3 | The roots of educational finance are found in basic disciplines like -
  • statistics
  • economics and political science
  • law and taxation
  • all the above
Q4 | The sources of income for education may be broadly classified into -
  • Public and Private funds
  • Government and Non – government funds
  • Both of the above
  • None of the above
Q5 | Public funds may be in the form of -
  • grants
  • subsidies
  • subventions
  • all the above
Q6 | The various kinds of fees charged to students include -
  • tuition fee
  • library and laboratory fee
  • magazine and games fee
  • all the above
Q7 | Sums of money where the principles are maintained intact and only the income from theinterest on the principal are consumed is called -
  • Land grants
  • Bequests
  • Endowments
  • Philantropic trust
Q8 | The essential aspects of educational finance include changes in -
  • targets and policies
  • procedures
  • administration
  • all the above
Q9 | Some of the main problems faced in financing education are –
  • expanding educational facilities
  • expanding educational services
  • lack of priorities
  • all the above
Q10 | Which is a major factor affecting financial allocations?
  • Unequal distribution of wealth
  • Population mobility
  • Constitutional Provisions
  • Low level of national income
Q11 | The main elements of traditional approach to financial management are -
  • Institutional sources of finance
  • Issue of financial devices to collect refunds from capital market
  • Accounting and legal relationship between source of finance and business
  • all the above
Q12 | The main elements of modern approach to financial management are -
  • evaluation of alternative fund utilization
  • capital budgeting
  • financial planning
  • all the above
Q13 | The critical decisions to be taken under modern approach to financial management are -
  • investment decision
  • financing decision
  • dividend decision
  • all the above
Q14 | Which is a function of financial management?
  • tax planning
  • management of provident funds
  • securities and social insurance funds
  • all the above
Q15 | Which is not a scope of financial management?
  • financial investment
  • financial control
  • financial supervision
  • financial planning
Q16 | The nature of financial management is concerned with -
  • functions and goals of the institution
  • procedural aspects
  • relation with other subsystems
  • all the above
Q17 | Financial management essentially involves -
  • risk-return trade off
  • types of assets
  • investment decisions
  • all the above
Q18 | Financial management affects the -
  • survival of the firm
  • growth of the firm
  • vitality of the firm
  • survival, growth and vitality of the firm
Q19 | Financial management is needed due to –
  • acquisition and proper use of funds
  • improve profitability
  • increase value of the firm/institution
  • all the above
Q20 | Proper allocation and utilization of funds leads to -
  • improvement of operational efficiency
  • improvement of profitability
  • increase value of the firm/institution
  • all the above
Q21 | Improving profitability depends on -
  • promoting savings
  • proper and effective use of funds
  • increasing value of the firm
  • acquisition of funds
Q22 | The ultimate aim of any business concern is -
  • increase the wealth of the investors
  • maximize the wealth of the firm
  • increase the value of the firm
  • optimize the profit of the firm
Q23 | Acquisition of funds is determined by certain features such as -
  • philosophy of the institute
  • vision and goals of the institute
  • competitive environment
  • all the above
Q24 | Factors affecting allotment of funds include -
  • availability of funds
  • needs of various departments or services
  • nature of activity undertaken
  • all the above
Q25 | Other sources of getting money to finance education include -
  • donations, bequests and gifts
  • interests on bank balances and securities
  • rent from buildings
  • all the above