Financial Management Quiz

What is the primary objective of financial management?

• To maximize employee satisfaction

• To minimize the cost of production

• To ensure regular and adequate supply of funds

• To ensure maximum profit and value for the company

What does EBIT stand for?

• Earnings Before Investment and Taxes

• Earnings Before Interest and Taxation

• Earnings Before Income and Tax

• Earnings Before Interest and Taxes

Which decision is concerned with the distribution of net profits?

• Working capital decision

• Dividend decision

• Financing decision

• Investment decision

What is the primary focus of working capital management?

• Long-term investments

• Cash flow management

• Debt management

• Shareholder relations

Which of the following is a source of short-term working capital?

• Trade credit

• Debentures

• Shares

• Public deposits

Which of the following is a method of inventory management?

• Cash Flow Management

• Financial Forecasting

• Market Analysis

• Just-in-Time Management

What is the purpose of the Capital Asset Pricing Model (CAPM)?

• To evaluate the liquidity position

• To calculate the expected return of an asset

• To determine the market value of a company

• To assess the liquidity of assets

Which of the following is a type of dividend policy?

• Fixed Dividend Policy

• Stable Dividend Policy

• Variable Dividend Policy

• Random Dividend Policy

What is the definition of disinvestment?

• Selling or liquidating an asset

• Acquiring new companies

• Investing in new projects

• Increasing capital expenditures

Which of the following is a method of business valuation?

• Market Analysis

• Net Income Approach

• Product Valuation

• Employee Valuation