Financial management

Financial Management aims at .......................................

• Maximum fund at minimum cost

• Optimum utilisation of fund with minimum cost and keeping the risk under control

• Getting fund for the business

• None of these

With an increase in the investment in fixed assets, there is a commensurate .............................. in the working capital requirement.

• Decrease

• Increase

• May increase or decrease

• No change

An organisation wanting to have more liquid assets would .............................

• raise more amount of short term funds

• raise more amount of long term funds

• No change im capital

Out of which affects Financial management:

• The quantum of current assets and its break-up into cash, inventory and receivables

• The amount of long-term and short- term funds to be used

• All Incomes in the Profit and Loss Account

• A and B

The primary aim of financial management is ...............................

• Wealth maximisation

• Increase the share price

• Both A and B

• Distributing maximum dividend

Diner Ltd. is a restaurant having 15 restaurants in Europe. They decide to take this number to 25 by opening 10 more restaurants in the major cities of Europe.
What do you think will be the fixed capital here?

• High

• Low

• Can be high or low

Bharat Express’ specialises in Courier Services and helps business firms to make sure that the goods are made le to the customers at the right place and at the right time. What will be the working capital requirement of the company?

• High

• Low

• Moderate

• Depend on the volume of business.

Types of Investment decisions

• Long -term, Medium -term and short term

• LOng-term and Medium -term

• Long -term and short term

• No classification

....................... decision are irreversible.

• Capital budgeting decision

• Working capital decisions

• Both A and B

• None of these

What are the essential ingredients of sound working capital management?

• Efficient cash ,inventory and receivables management

• Efficient capital contribution and debtors management

• Efficient creditors and debtors management.

• None of these.