WorksheetsFinancial Management: An overview
Total questions: 30
Worksheet time: 19mins
What is financial management?
Management of finance
Managaging procurement and utilisation of fund
Accounting for managerial decision making
All of the above
The job of a finance manager is confined to
Raising of funds
Management of cash
Utilisation of fund
Both raising and utilisation of fund
Capital budgeting is associated with
Long term and short term assets
Fixed assets
Long term assets
Short term assets
The primary goal of financial management is
To maximise the return
To maximise the wealth of owners
To minimise the risk
To maximise profit
Future value interest factor takes
Compounding
Inflation
Discounting
Deflation
Multiple compounding period means
Interest compounded more than once in a year
Interest is calculated for a number of years
Interest compounded anually
What is the compound value of Rs. 10,000 at the end of 3rd year at 12% interest when interest is calculated on quarterly basis?
14050
13500
14260
15430
What is ignored in profit maximisation?
Dividend
Time value
Risk
Earnings
"Financial management is concerned with the acquisition, financing and management of assets with some overall goal in mind". Whose definition is this?
Khan & Jain
Solomon
J.F. Bradley
James C. Van Horne
Business finance is a part of
Corporate finance
Private finance
Public finance
Personal finance
...........and ............ carry a fixed rate of interest and are to be paid off irrespective of the firm's revenues
Debentures, Dividends
Debentures, Bonds
Dividends, Bonds
Dividends, Treasury notes
Which of the following is not a source of external financing for a public limited company?
Ovedraft
Debentures
Retained profit
Share capital
Factoring involves
Purchase and collection of debts
Sales ledger management
Provision of specialised services related to credit investigation
All of the above
..............is concerned with maximisation of a firm's stock price
Shareholder wealth maximisation
Profit maximisation
Stakeholder welfare maximisation
EPS maximisation
Which of the following is a financing decision?
Providing for doubtful debts
Issuing a 5- year Bond
Depreciating a fixed asset
The profits in a year which are not distributed to shareholders are called (a)
Which of the following is a hybrid form of security?
Equity shares
Preference shares
Debentures
None of these
Which of the statement is not true?
Debenture is a creditorship security
Ownership securities are represented by debentures
Retained profit is an internal source of financing
All of the above
Shares issued to the promoters of a company
Sweat equity share
No par share
Deferred share
Right share
Which of the following bond that carries high yield and high risk?
Zero Coupon Bond
Junk Bond
Bunny Bond
Bearer Bond
Compounding technique is used to:
Find out the future value of money
Find out both present and future value of money
Find out the present value of money
None of the above
Equity financing designed specially for funding start ups and high technology projects
Seed capital
Bridge finance
Venture capital
Forfaiting
Which among the statement is not true for a debenture
Long term loan finance
Interest on debenture is a tax deductible expense for the company
Fixed and regular source of income to the investor
None of these
Raising finance by selling export bill is called (a)
Which among the following is not true about an operating lease
1. Short term lease
2. Irrevocable
3. Lessee bears the cost of maintenance and insurance
4. Revocable
2 & 3
2 & 4
Only 4
1 & 4
What is the present value of Rs. 5,00,000 to be received after 5 years assuming 10 % interest rate?( DF- .621)
2,35,500
3,10,500
3,15,000
3,50,500
The process of converting long term illiquid assets into financial instruments for raising money is called
Securitisation
Bridge Finance
Venture Capital
Seed Capital
Trading on equity is possible on
Debentures
Preference shares
Equity shares
Debentures and preference shares
Which is not a part of investment decision?
a. Working capital management
b. Cash management
c. Credit management
d. Capital budgeting
c
d
a & b
b & c
The type of preference share which is eligible for arrears of dividend
Participating
Cumulative
Redeemable
Covertible
