FINANCE


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
ANSWER: B


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..
ANSWER: D


3. Capital budgeting is related to ____________.
A. long terms assets.
B. short term assets.
C. . long terms and short terms assets.
D. fixed assets.
ANSWER: A


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.
ANSWER: B


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.
ANSWER: A


6. Financial decisions involve ____________.
A. Investment, financing and dividend decisions.

B. Investment sales decisions.
C. Financing cash decisions.
D. Investment dividend decisions.
ANSWER: C


7. Traditional approach confines finance function only to ____________.
A. raising
B. mobilizing
C. utilizing
D. . financing
ANSWER: A


8. The companys cost of capital is called ____________.
A. Leverage rate
B. Hurdle rate.
C. Risk rate.
D. Return rate.
ANSWER: A


9. Market value of the shares are decided by ____________.
A. the respective companies.
B. the investment market.
C. the government .
D. share holders.
ANSWER: D


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.
ANSWER: C


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