FINANCIAL MANAGEMENT PRELIM EXAMINATION

1. It is an analytical metric expressed as a company's net sales minus the cost of goods sold.

• net profit margin

• gross profit margin

• operating profit margin

• surplus profit margin

2. Increasing the effort you put into sales as a business and using new or additional strategies to help you get there.

• profit

• market cost

• market share

• bond

3. Seeks to manage expenses ranging from phone, internet, and utility bills to employee payroll and outside professional services.

• share

• marginal equilibrium

• profit

• cost control

4. It indicates how much Earnings Before Interest and Taxes (EBIT) are generated per unit of currency.

• operating profit margin

• gross profit margin

• net profit margin

• all of the above

5. So-called bottom line is the most often mentioned when discussing a company's profitability.

• operating profit margin

• gross profit margin

• net profit margin

• all of the above

6. Concerned with the management of the current assets, which is a prerequisite to the long-term success of any business firm.

• HR management

• financial decision

• liquidity decision

• chief operating officer

7. These decisions can be in terms of acquisition of assets, financing and raising funds, day-to-day capital and expenditure management, etc.

• dividend decision

• financial decision

• liquidity decision

• investment decision

8. It is one of the crucial decisions made by the finance manager relating to the payouts to the shareholders.

• dividend decision

• financial decision

• liquidity decision

• investment decision

9. It is important to allocate capital in those long-term assets so as to get maximum yield in the future.

• dividend decision

• financial decision

• liquidity decision

• investment decision

10. A term used to describe capital in a business, the way it is obtained and used.

• business financing

• insurance firm

• capital outlay

• establishment