Financial Management Set 2

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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