Financial Management: An overview

What is financial management?

• Management of finance

• Managaging procurement and utilisation of fund

• Accounting for managerial decision making

• All of the above

The job of a finance manager is confined to

• Raising of funds

• Management of cash

• Utilisation of fund

• Both raising and utilisation of fund

Capital budgeting is associated with

• Long term and short term assets

• Fixed assets

• Long term assets

• Short term assets

The primary goal of financial management is

• To maximise the return

• To maximise the wealth of owners

• To minimise the risk

• To maximise profit

Future value interest factor takes

• Compounding

• Inflation

• Discounting

• Deflation

Multiple compounding period means

• Interest compounded more than once in a year

• Interest is calculated for a number of years

• Interest compounded anually

What is the compound value of Rs. 10,000 at the end of 3rd year at 12% interest when interest is calculated on quarterly basis?

• 14050

• 13500

• 14260

• 15430

What is ignored in profit maximisation?

• Dividend

• Time value

• Risk

• Earnings

"Financial management is concerned with the acquisition, financing and management of assets with some overall goal in mind". Whose definition is this?

• Khan & Jain

• Solomon

• J.F. Bradley

• James C. Van Horne

Business finance is a part of

• Corporate finance

• Private finance

• Public finance

• Personal finance