Financial Management (059037)

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 account

• Amount of returns expected
• Timing of anticipated returns
• Risk associated with uncertainty of returns
• All of the above

The Primary goal of financial management is

• to maximise return

• to minimize risk

• to maximize the wealth of owners

• to maximize profit

External sources of finance do not include:

• Retained earnings

• Overdraft

• Leasing

• Debentures

Reason for time value of money

• inflation

• reinvestment purpose

• uncertainity

• All the above

The process of calculating present value of future cash flows

• compounding

• discounting

• both compounding and discounting

• none of the above

Permanent working capital

• varies with seasonal needs.

• includes fixed assets.

• is the amount of current assets required to meet a firm's long-term minimum needs.

• includes accounts payable.

Net working capital refers to

• total assets minus fixed assets.

• current assets minus current liabilities.

• current assetsets minus inventories.

• current assets

Financial management is concerned with managerial activities relating to

• Planning

• Procurement and administration of funds

• Optimum utilisation of funds

• All of the above

The structure of total capital funds raised by the company is called

• Capital structure
• Capital Composition

• Owner Fund's Structure

• Capital Build