Finance and Financial Management Quiz

What is the primary focus of Corporate Finance?

• Marketing strategies

• Human resources

• Tax management

• Investment analysis

Which of the following is NOT a function of Financial Management?

• Budgeting

• Sales forecasting

• Managing financial operations

• Raising capital

What does maximizing shareholders' wealth emphasize?

• Cost-cutting measures

• Market expansion

• Long-term financial benefits

• Short-term profits

Which term refers to the process of obtaining money from various sources?

• Investment Function

• Raising Funds

• Liquidity Function

• Dividend Function

What is the purpose of a Balance Sheet?

• To show cash inflows and outflows

• To list assets, liabilities, and equity

• To report revenue and expenses

• To analyze market trends

Which of the following is considered a current asset?

• Patents

• Cash

• Machinery

• Land

What does the term 'Agency Costs' refer to?

• Taxes on corporate profits

• Fees paid to financial institutions

• Costs of acquiring new assets

• Expenses to align managerial actions with shareholder interests

Which financial statement shows a company's profitability over time?

• Income Statement

• Balance Sheet

• Statement of Cash Flows

• Statement of Retained Earnings

What is the definition of 'Liquidity' in finance?

• The ability to meet long-term obligations

• The ease of converting assets into cash

• The total amount of debt a company has

• The profitability of a business

Which of the following is a characteristic of a Corporation?

• Partnership structure

• Owned by a single individual

• Limited liability for owners

• No legal entity status