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MAF253 - Topic 1 Introduction to Financial Management

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.

Managers are generally assumed to be ......

a)

risk seekers.

b)

risk takers.

c)

risk indifferent.

d)

risk averse.

2.

Adira works as a financial manager in BOYAN Bhd. She is willing to invest RM7,500 in a project that has an expected value of RM5,000. Melissa can be described as .........

a)

a risk indifferent.

b)

a risk avoider.

c)

a risk taker.

d)

a risk averse.

3.

Money market is used for ..................... purpose.

a)

security

b)

short-term

c)

long-term

d)

stock

4.

Capital budgeting related to .......

a)

long term assets and short-term assets.

b)

short-term assets.

c)

fixed assets.

d)

long-term assets.

5.

Cash flows are the money that is available to a business at any given time.

a)

TRUE

b)

FALSE

6.

Short-term securities are sold in the capital market.

a)

TRUE

b)

FALSE

7.

Employees Provident Fund is an example of a financial institution.

a)

TRUE

b)

FALSE

8.

In Malaysia, the only financial institution that specializes in long-term money market operations is the discount house.

a)

TRUE

b)

FALSE

9.

The primary goal of a publicly owned firm is ......

a)

to maximize the expected net profit.

b)

to maximize the dividends per share.

c)

to maximize the stock price per share.

d)

to maximize the expected total corporate profit.

10.

The most important goal of a company is to ......

a)

increase profits

b)

increase the market price of the company's common stock

c)

reduce costs and expenses

d)

increase profits