Financial Management Prep

Finance functions are

• Planning for funds

• Raising of funds

• Allocation of funds

• All of the above

Financial management is mainly concerned with

• All aspects of acquiring and utilizing financial resources for firms activities

• Arrangement of funds

• Efficient Management of every business

• Profit maximisation

The primary goal of financial management is

• to maximize the return

• to minimize the risk

• to maximize wealth of owners

• to maximize profit

Market value of shares are decided by

• the respective companies

• the investment market

• the government

• the shareholders

Capital budgeting related to

• long term assets

• short term assets

• long term assets and short term assets

• fixed assets

1. Investment can be defined.

• Person’s dedication to purchasing a house or flat

• Use of capital on assets to receive returns

• Usage of money on a production process of products and services

• Net additions made to the nation’s capital stocks

Dividend decision is concerned with

• only distribution of dividend to shareholders

• how much to be retained in business

• how much profit earned is distributed to shareholders and how much to be retained in the business

• none of the above

Market value of shares is influenced by

• financing decision

• investment decision

• dividend decision

• financial decision

Financial management aims at

• ensuring availability of enough funds

• reducing the cost of funds procured

• effective deployment of funds

• all of the above

A long term investment decision is called

• working capital decision

• capital budgeting decision

• financial decision

• dividend decision