QUIZ 1 FINANCIAL MANAGEMENT

Financial Management is related to taking decisions on:

• Investing

• Financing

• Dividend

• All of the above

Wealth maximization is the ______ criteria than profit maximization

Money has ___ value

Which technique of capital budgeting consider time value of money?

• IRR

• NPV

• PI

• All of the above

Cost of retained earnings is equal to cost of equity

• True

• False

The primary goal of financial management is

• to maximize the return

• to minimize the risk

• to maximize wealth of owners

• to maximize profit

Capital budgeting related to

• long term assets

• short term assets

• long term assets and short term assets

• fixed assets

Financial management aims at

• ensuring availability of enough funds

• reducing the cost of funds procured

• effective deployment of funds

• all of the above