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Chapter 1: Introduction to Financial Management

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Functions of managerial finance are

a)

Planning for investments

b)

Raising of funds

c)

Working capital decisions

d)

All the above

2.

The primary goal of financial manager is

a)

to maximise return

b)

to minimize risk

c)

to maximize the shareholder's wealth

d)

to maximize the stakeholder's wealth

3.

_____ is wealth in the form of money or other assets owned by a person or organization, available for a particular purpose such as starting a company or investing.

a)

Consumer

b)

Seller

c)

Capital

d)

Demand

4.

____ represent the cost that shareholders bear due to managers’ pursuit of their own interests

a)

Shareholder

b)

Stakeholder

c)

Expenses

d)

Agency problem

5.

What practices can be done to reduce agency cost?

a)

Giving investment

b)

Paying salary

c)

Corporate governance

d)

Dividend

6.

Which of the following refers to corporation

a)

Tax paid by individual owners

b)

Decision making will be done by the board of directors

c)

More than one person enter the business

d)

Unlimited liability

7.

_____ are intermediaries that channel the saving of individuals, businesses, and governments into loans or investments.

a)

Financial institutions

b)

Kuala Lumpur Stock Exchange

c)

Money markets

d)

Financial markets

8.

The following are types of financial institutions in Malaysia, except ____

a)

Commercial banks

b)

Investment banks

c)

Capital Market

d)

Shadow banking systems

9.

What is the differences of money market and capital market?

a)

no differences

b)

types of funds

c)

one is short-term and the other is long-term.

d)

both are suppliers of funds

10.

Key principles that financial managers use when making business decisions include

a)

time value of money

b)

tradeoff between return and risk

c)

cash

d)

all of the above