Financial Management Quiz 1

The key objective of financial management is ______.

• Profit Maximization

• Wealth Management

• Asset Maximization

• Sales Maxmization

Maximisation of Shareholders Wealth is reflected in

• Sales Maximization

• Number of Shareholders

• Market Price of Equity Shares

• none of the above

Which technique in financial management enable us to take investment/expansion decisions?

• Capital Structure

• Ratio Analysis

• Working Capital Management

• Capital Budgeting

Which technique in financial management enable us to take procurement/sourcing decisions?

• Capital Structure

• Working Capital Management

• Ratio Analysis

• Capital Budgeting

Which technique of financial management enables to manage day to day activities?

• Capital Structure

• Capital Budgeting

• Working Capital Management

• Ratio Analysis

Which financial decision help a businessman in opening a new branch of its business. 

• Financing decision
• Dividend decision
• Investment decision
• None of the above

The objective of wealth maximization takes into consideration:

• Risk related to uncertainty of returns

• Timing of expected returns

• Amount of returns expected

• All of the above

A limited partnership provides limited liability to

• all general partners.

• only limited partners responsible for day to day management of the firm.

• only to limited partners who do not participate in the management of the business.

• all partners.

Time value of money explains that:

• value of rupee received today is worth more than it is in the future

• value of rupee received today is worth less than it is in the future

• value of rupee received today and at some other time in future is equal

• None of them

All financial decisions are taken considering

• Positive cashflows

• current year's profit

• NPV

• current year's revenue