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financial management

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

That part of management which is connected with the financial activities is

called ________ management.

a)

Personnel

b)

Financial

c)

Production

d)

All the above

2.

Fixed assets investment decision is called ________ .

a)

Management of working capital

b)

Capital budgeting

c)

Financing decision

d)

None of these

3.

Shareholder’s current wealth in a company = ________ × ________ .

a)

Face value of shares × Market price per share

b)

Number of shares × Face value of shares

c)

Number of shares × Market price per share

d)

Number of shares × Profit per share

4.

Financial planning means ________ of financial activities.

a)

Determining

b)

Pre-determining

c)

Later -determining

d)

Not determining

5.

Under financial management a forecast of receipts and payments is made and

the shortage or sufficiency of ________ is ensured.

a)

Capital

b)

Human resource

c)

Material

d)

All the above

6.

With the help of the financial planning a situation of continuous ________ can be maintained.

a)

Minimum Capital

b)

Liquidity

c)

Maximum Capital

d)

(b) and (c)

7.

With the help of financial planning capital can be made available at ________cost.

(a) (b)

(c) (d)

a)

More

b)

Medium

c)

Minimum

d)

Zero

8.

Without ________ no business planning can be successfully implemented.

a)

Dividend decision

b)

Investment decision

c)

Both of above

d)

Financial planning

9.

________ is the example of a financial decision.

a)

Investment decision

b)

Financing decision

c)

Dividend decision

d)

All of these

10.

What is included in financial management according to the traditional approach?

a)

Arranging finance

b)

Using finance effectively

c)

Both (a) and (b)

d)

None of these

11.

What is influenced by the financing decision?

a)

Market price of shares

b)

Cost of capital

c)

Both (a) and (b)

d)

None of these

12.

Which branch of management does take care of the efficient planning and controlling of the financial activities of an organisation?

a)

Production management

b)

Financial management

c)

Marketing management

d)

Personnel management

13.

What is the chief financial question before an organisation?

a)

How much finance will be required for various business activities.

b)

How much amount can be acquired from various resources.

c)

How the profit of the business will be divided.

d)

All of these

14.

A person buys 100 shares @ Rs.100 per share of XYZ company. After some time the market price of shares becomes Rs.120 per share. How much wealth shall he

have in the company.

a)

Rs.12,000

b)

Rs.8000

c)

Rs.10000

d)

Rs.10120

15.

What is included in financial planning?

a)

Determining financial objectives

b)

Determining financial policies

c)

Determining financial procedures

d)

All of these

16.

What out of the following, financial planning helps to achieve?

a)

Arrangement of material

b)

Financial control

c)

Arrangement of machinery

d)

All of above

17.

Which out of the following happens to be a financial decision?

a)

Investment decision

b)

Financing decision

c)

Dividend decision

d)

All of these

18.

The meaning of capital structure relates to the percentage of ________ sources.

a)

Long-term

b)

Medium term

c)

Short-term

d)

Current

19.

Capital Structure is called ________ .

a)

Quantitative aspect

b)

Qualitative aspect

c)

Both (a) and (b)

d)

None of these

20.

________ is not included in owner’s capital?

a)

Equity share capital

b)

Long-term debt

c)

Preference share capital

d)

Retained profit

21.

________ capital should be preferred while arranging for a long-term finance?

a)

Preference share capital

b)

Equity share capital

c)

Debt or borrowed capital

d)

Retained earning

22.

Keeping in view the high rate of Income Tax the company should give priority to ________ capital.

a)

Debt

b)

Equity

c)

Preference

d)

Owner

23.

The importance of ‘Trading on Equity’ lies in the fact that if the company is earning more profit, it can make use of borrowed capital and preference share capital and by doing so it can increase the income of ________

a)

Preference Shareholders

b)

Lenders

c)

Equity Shareholders

d)

Government

24.

What does affect the value of company?

a)

Capital cost

b)

Market price of shares

c)

Both (a) and (b)

d)

None of these

25.

What out of the following is the effect of optimum capital structure?

a)

Capital cost-minimum

b)

Total value of company-maximum

c)

Both (a) and (b)

d)

Market price of shares minimum