1. Financial Management is mainly concerned with ____________.
A. arrangement of funds
B. all aspects of acquiring and utilizing financial resources for firms activities
C. efficient Management of every business.
D. profit maximization
2. 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..
3. Capital budgeting is related to ____________.
A. long terms assets.
B. short term assets.
C. . long terms and short terms assets.
D. fixed assets.
4. Working capital management is managing ____________.
A. long term assets.
B. short term assets and liabilities.
C. long terms liabilities.
D. only short term assets.
5. When few hold the shares of a public limited company it is called ____________.
A. Privately owned company
B. Publicly traded company
C. Closely held company.
D. Public and private company.
6. Financial decisions involve ____________.
A. Investment, financing and dividend decisions.
B. Investment sales decisions.
C. Financing cash decisions.
D. Investment dividend decisions.
7. Traditional approach confines finance function only to ____________.
D. . financing
8. The companys cost of capital is called ____________.
A. Leverage rate
B. Hurdle rate.
C. Risk rate.
D. Return rate.
9. Market value of the shares are decided by ____________.
A. the respective companies.
B. the investment market.
C. the government .
D. share holders.
10. Cost of retained earnings is equal to ____________.
A. Cost of equity.
B. Cost of debt.
C. Cost of term loans.
D. Cost of bank loan.