Financial Management MCQs
Q1. Investment can be defined as
A) Person’s dedication to purchasing a house or flat
B) Use of capital on assets to receive returns
C) Usage of money on a production process of products and services
D) Net additions made to the nation’s capital stocks
Answer: B
Q2. The concept of Financial management is.
A) Profit maximization
B) All features of obtaining and using financial resources for company operations
C) Organization of funds
D) Effective Management of every company
Answer: B
Q3. What is the primary goal of financial management?
A) To minimise the risk
B) To maximise the owner’s wealth
C) To maximise the return
D) To raise profit
Answer: B
Q4. GST is a consumption of goods and service tax based on.
A) Development
B) Dividend
C) Duration
D) Destination
Answer: D
Q5. The finance manager is accountable for.
A) Earning capital assets of the company
B) Effective management of a fund
C) Arrangement of financial resources
D) Proper utilisation of funds
Answer: C
Q6. The market value of the shares is decided by
A) The investment market
B) The government
C) Shareholders
D) The respective companies
Answer: A
Q7. The capital budget is associated with.
A) Long terms and short terms assets
B) Fixed assets
C) Long terms assets
D) Short term assets
Answer: C
Q8. CAPM stands for.
A) Capital asset pricing model.
B) Capital amount printing model.
C) Capital amount pricing model.
D) Capital asset printing model.
Answer: A
Q9. What does financial leverage measure?
A) No change with EBIT and EPS
B) The sensibility of EBIT with % change with respect to output
C) The sensibility of EPS w.r.t % change in the EBIT level
D) % variation in the level of production
Answer: C
Q10. From the below-mentioned items which are financial assets?
A) Machines
B) Bonds
C) Stocks
D) B and C
Answer: D
Q11.Financial management is an _______ function of any business.
A. organic
B. inorganic
C. conventional
D. least important
Answer: A
Q12.Financial management mainly focuses on _______.
A. Arrangement of funds
B. Efficient management of every business
C. Brand dimension
D. All elements of acquiring and using means of financial resources for financial
activities
Answer: D
Q13:Financial management process deals with _______
A. investments
B. financing decisions
C. profit maximization
D. more assets
Answer: B
Q14.According to Massie, Financial management is the __________activity of a
business.
A. operational
B. marketing
C. human resource management
D. sales
Answer: A
Q15.Select correct option.
A. Profits maximisation can be part of a Wealth maximisation strategy
B. Wealth maximisation can be part of a Profits maximisation strategy
C. Profits maximisation and Wealth maximisation strategy are the same
D. Wealth maximisation is completely different from Profits maximisation strategy
Answer: A
Q16.Financial Management is mainly concerned with ________.
A. acquiring financial resources for firms activities
B. utilizing financial resources for firms activities
C. procurement of funds of the enterprise
D. All of the above
Answer: D
Q17. _____ Maximization objective ignores timing of benefit i.e time value of
money.
A. Profit
B. Wealth
C. Value
D. Both A & B
Answer: C
Q18. _________ maximization objectives fail to recognize quality of benefits i.e.
risk factor.
A. Value
B. Wealth
C. Profit
D. Both A & B
Answer: C
Q18.The full form of CAPM is ______
A. Capital access pricing model
B. Capital assessment pricing model
C. Capital advantage pricing model
D. Capital asset pricing model
Answer: D
Q19.For maximizing the profit, the costs should be ______.
A. minimized
B. ignored
C. maximized
D. upgraded
Answer: A
Q20.The concept of Financial management is mainly related to ______
A. arrangement of funds for the company
B. procurement & utilization of funds for company operations
C. profit maximization for the organization
D. accounting of profit and loss on yearly basis
Answer: B
Q21.For maximizing the profit, production is to be ________.
A. minimized
B. ignored
C. maximized
D. downsized
Answer: C
Q22.The full form of GST is _______
A. Good & Simple Tax
B. Goods & Sales Tax
C. Goods & Services Tax
D. Goods & Salary Tax
Answer: C
Q23.The main objective of financial management of an enterprise is to _________.
A. maximize the business expenses
B. maximize the profit
C. maintain bill and payments
D. maximise the production costs
Answer: B
Q24. _______ is the main goal of financial management.
A. profit maximization
B. fund transfer
C. maximum returns
D. wealth maximization
Answer: D
Q25.The ______approach of financial management fully ignores the internal
decision-making.
A. Business finance
B. Traditional
C. Modern
D. two sided
Answer: B
Q26.The ______ approach of financial management provides analytical framework
for financial problems.
A. Classical
B. Traditional
C. Modern
D. Empirical
Answer: C
Q27.The financial management function has become _____ and complex.
A. Less demanding
B. More demanding
C. Less important
D. Outdated
Answer: B
Q28. ______ is concerned with the duties of the financial managers in the
business firm.
A. Financial Management
B. Accounting Management
C. Personnel Management
D. Merger
Answer: A
Q29.Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Answer: C
Q30.Financial Management is mainly concerned with
______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
Answer: A
31.The primary goal of the financial management is
____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
Answer: C
32.In his traditional role the finance manager is responsible
for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
Answer: B
Q33.Market value of the shares are decided by
____________.
A. the respective companies
B. the investment market
C. the government
D. shareholders
Answer: B
