WorksheetsUnit I Financial Management
Total questions: 10
Worksheet time: 5mins
Basic objective of Financial Management is ________________.
Maximization of profit
Maximization of share holder's wealth
Ensuring Financial discipline in the firm
All of these
___________ security is known as variable income security.
Debentures
Preference shares
Equity shares
None of these
Long term finance is required for ______________.
Current assets
Fixed assets
None of these
Intangible assets
________ is concerned with the acquisition, financing, and management of assets with
some overall goal in mind
Financial management
Profit maximization
Agency theory
Social responsibility
.__________ is concerned with the maximization of a firm's earnings after taxes
Shareholder wealth maximization.
Profit maximization
Stakeholder maximization
EPS maximization
_______________ is the most appropriate goal of the firm
Shareholder wealth maximization
Profit maximization
Stakeholder maximization.
EPS maximization
Which of the following statements is correct regarding profit maximization as the primary
goal of the firm?
Profit maximization considers the firm's risk leve
Profit maximization will not lead to increasing short-term profits at the expense of
lowering expected future profits
Profit maximization does consider the impact on individual shareholder's EPS
Profit maximization is concerned more with maximizing net income than the stock
price.
Which of the following is not normally a responsibility of the treasurer of the modern
corporation but rather the controller?
Budgets and forecasts
Asset managemen
Investment management
Financial management
The __________ decision involves determining the appropriate make-up of the right-hand
side of the balance sheet
Asset management
Financing
Investment
Capital Budgeting
.The __________ decision involves a determination of the total amount of assets needed,
the composition of the assets, and whether any assets need to be reduced, eliminated, or
replaced
Asset management
Financing
Investment
Accounting
