Scope & Objectives of FM

Which objective of financial management recognize risk-return relationships

• Profit maximization

• Wealth maximization

• Both of (a) & (b)

• None of above

In investment decision we decide

• Where to invest

• From where to borrow

• How much dividend to be distributed

• None of above

______ is concerned with the maximization of a firms earnings after taxes.

• Shareholder wealth maximization

• Profit maximization

• Stakeholder maximization

• EPS maximization

______ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

• Financial Management

• Profit Maximization

• Agency Theory

• Social Responsibility

In financing decision we decide

• Where to invest

• From where to borrow

• How much dividend to be distributed

• None of above

The long-run objective of financial management is to:

• Maximize earnings per share

• Maximize the value of the firms common stock

• Maximize return on investment

• Maximize market share

Which objective of financial management focus on short term

• Profit maximization

• Wealth maximization

• Both of (a) & (b)

• None of above

Does investment, financing, dividend decisions are inter-related to each other?

• True

• False

• Partially true

• Partially false

The most important goal of financial management is:

• Profit maximisation

• Matching income and expenditure

• Using business assets effectively

• Wealth maximisation

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

• Asset management

• Financing

• Investment

• Capital budgeting