Corporate finance

1. Basic objective of Financial Management is __________.

• Maximization of profit.

• Maximization of shareholders’ wealth.

• Ensuring Financial discipline in the firm.

• All of these.

2. Financial structure refers to ________.

• Short-term resources.

• All the financial resources.

• Long-term resources.

• All of these.

3. Quick asset does not include ________.

• Government bonds.

• Book debts.

• Advance for supply of raw materials.

• Inventories.

4. A business owned by a solitary individual who has unlimited liability for its debt is called a_______.

• corporation.

• sole proprietorship

• partnership.

• limited liability company.

5. Long-term finance is required for _______.

• Current assets

• Fixed assets.

• Intangible assets.

• None of these.

6. The __________ decision involves determining the appropriate make-up of the right-hand side of the balance sheet.

• Asset management.

• Financing.

• Investment

• Capital budgeting.

7. The long-run objective of financial management is to _____________.

• Maximize earnings per share.

• Maximize the value of the firm's common stock.

• Maximize return on investment.

• Maximize market share.

8. The most important and common form of dividend is ________________.

• Stock dividend.

• Cash dividend.

• Bond dividend.

• Scrip’s dividend.

9. Which of the following is the first step in capital budgeting process?

• Final approval.

• Screening the proposal.

• Implementing proposal .

• Identification of investment proposal.

10. Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?

• articles of incorporation

• corporate breakdown

• agency problem

• bylaws