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Financial Management 1

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

What can you understand about Financial Management?

a)

Financial management means planning, managing, directing and monopoly the financial activities such as procurement of debts

b)

Financial management means planning, managing, directing and controlling the financial activities such as procurement of funds

c)

Financial management means planning, managing, directing and controlling the financial activities such as procurement of debts

d)

Financial management means planning, managing, stabilizing and controlling the financial activities such as procurement of funds

2.

Select the correct answer(s) for the terms of Basic Economy

a)

Utility: Is the satisfaction that one achieves from consuming a goods or services and its concept based on the individual itself

b)

Economic efficiency: Is the measure of inputs obtained with a given set of outputs. The lesser the amount of wastage, the better

c)

Scarcity: Is when the amount of production is limited and finite (labor, land & capital) which affects the demand

d)

Elasticity: Is the change in quality of the goods associated with a change in the prices

e)

Opportunity Cost: Is the value or amount of the next-highest-valued substitute use of that resource.

3.

Gross Domestic Product(GDP) is a (a)   measure of the market value of all the final goods and services produced in a period of time

4.

What are the advantages of Cost of Debt(s) ?

a)

More tax efficient than equity financing

b)

Lenders have a claim to equity in the company

c)

Ownership interest is not diminished by the debt

d)

Principal and interest re-payments are finalized

5.

Pick the correct answer(s) regarding the concept of ROI

a)

Compare investments returns and costs by constructing a ratio or percentage

b)

ROI ratio < 0% - investment return more than cost

c)

Many competitors, many choices factor of investment higher ROI is better choice

d)

Involves magnitude and timing of investments (gain and lose)

6.

The payback period can be described by Payback Period

a)

= (p + n) / (p - ny)

= 1 + ny - n/p (unit: years)

b)

= (p + n) / (p - ny)

= 1 + ny - n/p (unit: years)

c)

= (p - n) / (p + ny)

= 1 + ny - n/p (unit: years)

d)

= (p - n) / (p + ny)

= 1 - ny + n/p (unit: years)

7.

What are the technique(s) for Discounting Method of Investment Appraisal ?

a)

Accounting rate of return

b)

Net past Value

c)

Internal Rate of Return

d)

Net worth balancing method

8.

Capital Allowances can be described as

a)

the practice of allowing a company to get tax evasion on tangible capital expenditure by allowing it to be expensed against its annual past-tax expenditure

b)

the practice of allowing a company to get tax relief on tangible capital expenditure by allowing it to be expensed against its annual pre-tax expenditure

c)

the practice of allowing a company to get tax relief on tangible capital expenditure by allowing it to be expensed against its annual pre-tax income

d)

the practice of allowing a company to get tax evasion on tangible capital expenditure by allowing it to be expensed against its annual past-tax income

9.

The international Monetary Fund (IMF) was established from post World War 2 by Allied Government on December 27, 1945 to form an Agreement. What is the name of the historic agreement?

a)

The Hempshire Agreement

b)

The Switzerland Agreement

c)

The Bretton Woods Agreement

d)

The Auckland Agreement

10.

The IMF's major objective(s) are

a)

To promote international monetary cooperatioin

b)

To facilitate the expansion and balanced growth of international trade

c)

To promote exchange-rate stability

d)

To establish a bilateral system of payments