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This set of Educational Planning and Management Multiple Choice Questions & Answers (MCQs) focuses on Financial Management Set 2
Q1 | Which one of the following is the main source of income for educational organisation?
- Fees from the students
- Endowments and land grants
- Donations
- All of the above
Q2 | Major factors that influences educational finance is
- Removal of disparities in educational opportunities
- Maintenance of normal service
- Demand for education
- Unemployment of youth
Q3 | “Finance is the art and science of managing money”.Who says this?
- Lawrence J. Gitman
- Taylor
- Hawthorne
- Elton
Q4 | Which one of the following is not the objective of financial management?
- To ensure human capital development
- To ensure adequate returns to the shareholders
- To ensure optimum fund utilisation
- To ensure safety on investment
Q5 | Financial management is concerned with
- Profit and loss of the organisation
- Procurement and utilisation of funds
- Loan from banks
- Exchange of money with other countries
Q6 | Which one of the following is not a source of income for educational organisation?
- Land grants and endowments
- Government funds
- Loan from State Bank of India
- Fees from the students
Q7 | The success of any business organisation depends on the
- Knowledge of the workers
- Provision of sufficient money
- Geographical area
- Road contributions
Q8 | The main source of income of the educational institution is received from
- The Village Community
- The United Nation
- The State Government
- The fee of students
Q9 | Under centralised management, authority and powers rest in a/an
- Local body
- Autonomous body
- Central body
- None of the above
Q10 | “Shareholder wealth” in a firm is represented by:
- The number of people employed in the firm
- The book value of the firm’s assets less the book value of its liabilities
- The amount of salary paid to its employees
- The market price per share of the firm’s common stock
Q11 | The objective of financial management is to:
- Maximize earnings per share
- Maximize the value of the firm’s common stock
- Maximize return on investment
- Maximize market share
Q12 | “Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm’s financial resources”. Who says this?
- Weston and Brigham
- J.F. Bradlery
- Deepika& Maya Rani
- Ezra Solomon
Q13 | “Financial management is an area of financial decision making, harmonizing individual motives and enterprise goals”. Who define this?
- J.F. Bradlery
- Ezra Solomon
- Deepika& Maya Rani
- Weston and Brigham
Q14 | “Financial management is the area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals” Who says this?
- Guthman and Dougal
- Weston and Brigham
- J.F. Bradlery
- Deepika& Maya Rai
Q15 | “Financial management is properly viewed as an integral part of overall management rather than as a staff specially concerned with funds raising operations”.
- Deepika& Maya Rai
- J.F. Bradlery
- Guthman and Dougal
- Ezra Solomon
Q16 | “The activity concerned with the planning, raising, controlling and administering of fundsused in the business”. Who defines this?
- Ezra Solomon
- J.F. Bradlery
- Guthman and Dougal
- Weston Brigham
Q17 | The most common cause of financial problems are:
- Undercapitalization
- Inadequate expense control
- Credit terms
- All of the above
Q18 | A statement that projects management’s expectations for revenues and, based on those financial expectations, allocates the use of specific resources throughout the firm is called:
- Capital budget
- Operating budget
- Cash budget
- Resource budget
Q19 | An example of fixed asset is
- Live stock
- Value stock
- Income stock
- All of the above
Q20 | The total cost that arises when the quantity produced is increased by one unit is called
- The number of people employed in the firm
- The book value of the firm’s assets less the book value of its liabilities
- The amount of salary paid to its employees
- The market price per share of the firm’s common stock
Q21 | ______ varies inversely with profitability.
- Liquidity
- Risk
- Financing
- Liabilities
Q22 | _________ of a firm refers to the composition of its long term funds and its capitalstructure.
- Capitalisation
- Over-capitalistion
- Under-capitalisation
- Market capitalisation
Q23 | In finance, “working capital” means the same thing as
- Total assets
- Fixed assets
- Current assets
- Current assets minus current liabilities
Q24 | Which of the following would be consistent with a more aggressive approach tofinancing working capital
- Financing short term needs with short term funds
- Financing permanent inventory build up with long term debt
- Financing seasonal needs with short term funds
- Financing some long term needs with short term funds
Q25 | Which of the following is not the responsibility of financial management?
- Allocation of funds to current and capital assets
- Obtaining the best mix of financing alternatives
- Preparation of the firm’s accounting statements
- Development of an appropriate dividend policy