FINANCIAL MANAGEMENT I

1. Which of the following is considered as the principal financial objective of the firm?

• Shareholder wealth maximisation
• General welfare of the employees
• Welfare of the Society
• Welfare of Management

2. Which of the following statement is True?

• Management of all matters related to an Organisation's finances is called Cash inflows and outflows.
• Management of all matters related to an Organisation's finances is called Allocation of Resources.
• Management of all matters related to an Organisation's finances is called Financial Management.
• Management of all matters related to an Organisation's finances is called Finance.

3. Profit Maximisation does not take into consideration:

• Risk and Cash flow
• Cash Flow and Stock price
• Risk and EPS
• EPS and Stock Price

4. Finance Function Involves:

• Procurement of Finance Only
• Expenditure of Funds Only
• Safe custody of funds only
• Procurement and effective utilization of funds

5. The Phase in which the financial management was considered necessary only during specific events was called as ____________.

• Traditional Phase
• Transitional Phase
• Modern Phase
• None of the above

6. Which of the following is not a function of a Chief Financial Officer?

• Estimating the requirement of funds
• Dividend decision
• Cash Management
• Generating sales leads

7. The goal of profit maximisation would result in priority for ___________________.

• Cash flows available to stockholders
• risk of the investment
• earnings per share
• timings of the returns

8. Financial decisions involve the most appropriate mix of ____________ & _____________.

• Equity & Debt
• Current assets & Fixed Assets
• Cash & Bank
• Profit & Dividend

9. Time Value of money explains that _____________

• A unit of money received today is worth more than a unit received in future.
• A unit of money received today is worth less than a unit received in future.
• A unit of money received today and at some other time in future is equal.
• None of them

10. What would be the discount factor of Rupee 1 for year 4 at 10%.

• 0.909
• 0.751
• 0.826
• 0.683