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Financial Mgt

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Business finance is needed to

a)

Establish a business

b)

Run a business

c)

Expand a business

d)

All of the above

2.

Which of the following is not a tangible asset?

a)

Machinery

b)

Trademarks

c)

Factories

d)

Offices

3.

Financial Management aims at

a)

Reducing the cost of funds procured

b)

Keeping the risk under control

c)

Achieving effective deployment of such funds

d)

All of the above

4.

Primary aim of financial management is to

a)

Maximise shareholder’s wealth

b)

Wealth maximisation concept

c)

Maximisation of the market value of equity shares

d)

All of the above

5.

This decision relates to how the firm’s funds are invested in different assets,

a)

Investment decision

b)

Financing decision

c)

Dividend decision

d)

None of the above

6.

Purchasing a new machine to replace an existing one is an example of

a)

Financing decision

b)

Dividend decision

c)

Working capital decision

d)

Capital budgeting decision

7.

Dev has two projects A and B in hand. The same amount of risk is involved in both the projects. If the rate of return of project A and B is 20% and 15% respectively, then under normal circumstance, which of the two projects is likely to be selected?

a)

Project A

b)

Project B

c)

Both project A and project B

d)

None of the above

8.

Choose the different source of Debt financing from the following.

a)

Equity Shares

b)

Preference Shares

c)

Loan from Banks

d)

Debentures

9.

Which is the cheapest Source of Finance

a)

Debt

b)

Equity

10.

Long Term Investment Decisions are known as

a)

Capital Budgeting Decisions

b)

Working Capital Decisions

11.
Which financial decision help a businessman in opening a new branch of its business. 
a)
Financing decision
b)
Dividend decision
c)
Investment decision
d)
None of the above