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CHAPTER 1 - NATURE AND SCOPE OF FINANCIAL MANAGEMENT

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

The study of those financial intermediaries who provide (a)   , and the financial markets in which these intermediaries obtain their funds.

2.

"Decide the appropriate mix of debt and equity". This statement is true for

a)

Investment decision

b)

Financing decision

c)

Dividend decision

d)

Liquidity decision

3.

Retained earnings falls under __________

a)

Investment decision

b)

Financing decision

c)

Dividend decision

d)

Liquidity decision

4.

The selection of an investment proposal/s and the investment of funds in the selected proposal is called as (a)  

5.

Liquidity decision often relates to ___________

a)

Current liabilities and non-current assets

b)

Current assets and non-current liabilities

c)

Non-current assets and non-current liabilities

d)

Current assets and current liabilities

6.

Insolvency happens when ___________

a)

The firm cannot meet its current obligations fast enough

b)

The firm cannot meet its non-current obligations fast enough

c)

The firm can meet its current obligations fast enough

d)

The firm can meet its non-current obligations fast enough

7.

Dividend policy should be determined in terms of

4 lines
8.

(a)   is expected to be repaid after the harvest

9.

A farmer wants to build a permanent building as a storage shed for its half an acre farm. What type of loan should the farmer apply for?

a)

Short-term loan

b)

Medium-term loan

c)

Long-term loan

10.

individuals giving out small amounts of money to a project in return for something

a)

Peer-to-peer lending

b)

Reward-based crowdfunding

c)

Donation-based crowdfunding

11.

(a)   provides risk-bearing ability

12.

Buy stocks issued by a firm that represents certain degree of power to make decisions for the firm

a)

Corporation

b)

Owner

c)

Shareholders

d)

Directors

13.

(a)   provides financing to the farmers and assumes the associated risks

14.

Farmers who own considerable land, rent additional acreage to (a)   their managerial ability, and the land, machinery, and equipment they own

15.

Which of the following is NOT the characteristics of agricultural finance?

a)

Valuation of the firm.

b)

A sub-system of the business system which has other subsystems

c)

Involves risk-return trade-off decisions on investment

d)

Financial affects the survival, growth and suitality of the firm.