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WorksheetsFinancial Management Prep
Total questions: 47
Worksheet time: 26mins
Finance functions are
Planning for funds
Raising of funds
Allocation of funds
All of the above
Financial management is mainly concerned with
All aspects of acquiring and utilizing financial resources for firms activities
Arrangement of funds
Efficient Management of every business
Profit maximisation
The primary goal of financial management is
to maximize the return
to minimize the risk
to maximize wealth of owners
to maximize profit
Market value of shares are decided by
the respective companies
the investment market
the government
the shareholders
Capital budgeting related to
long term assets
short term assets
long term assets and short term assets
fixed assets
1. Investment can be defined.
Person’s dedication to purchasing a house or flat
Use of capital on assets to receive returns
Usage of money on a production process of products and services
Net additions made to the nation’s capital stocks
Dividend decision is concerned with
only distribution of dividend to shareholders
how much to be retained in business
how much profit earned is distributed to shareholders and how much to be retained in the business
none of the above
Market value of shares is influenced by
financing decision
investment decision
dividend decision
financial decision
Financial management aims at
ensuring availability of enough funds
reducing the cost of funds procured
effective deployment of funds
all of the above
A long term investment decision is called
working capital decision
capital budgeting decision
financial decision
dividend decision
A decision to acquire a new and modern plant to upgrade an old one is a
financing decision
working capital decision
investment decision
none of the above
Shareholder's funds include-------,------&-----
(a)
What is an example of a fixed expense?
Gas (for your car) Payment
Electric Bill
House Payment
Credit Card Fees
You put down $6,500 down on a $18,000 car and you expect to make monthly payments for the next 4 years. What type of financial goal is this?
Life sentence
Short-term
Mid-term
Long-term
Your monthly paycheck is an example of...
expenditure
income
investment
How many $1 cheese burgers you can buy
After taxes, Joe has $1,000 left of his monthly paycheck to spend his living expenses. What is the $1,000 left over called?
Disposable income
Irregular income
Combustible income
Conspicuous consumption
If your net worth is $2,800 solvent and your assets are $5,000; what must your liabilities total to?
$1,500
$2,200
$2,800
You have no liabilities
Which term best describes the belief that something is important or desirable.
Delayed gratification
Want
Need
Value
Thad is planning on proposing to his girlfriend. The ring costs $7,500. He wants to propose in one year. How much will he need to save each month?
$775.75
$375
$675
Too much he needs to find a cheaper women
If you spend $2,000 on monthly expenses and make $2,300 each month after taxes how long would it take you to save $5,000?
Just over 16 months
2 years
6 months
your expenses would put you in debt...give up and go back and live with your parents
Check all of the options below that would be considered financial Assets?
Your car
Your savings bonds
Your Stocks
Your beautiful eyes
Crippling Gambling Debt
Click all that apply: Variable expenses
Electric Bill
Insurance Bill
Water Bill
Rent
If you make $800 after taxes busing tables and $200 babysitting then spend $500 on your car payment and insurance each month what is your income for the month?
$1,500
$500
$1,000
-$500
Financial Planning helps in...
Managing Business
Managing Human Resources
Forecasting Business Situations
All of the above
A decision to acquire a new and modern plant to upgrade an old one is a
financing decision
working capital decision
investment decision
none of the above
Financial management aims at
ensuring availability of enough funds
reducing the cost of funds procured
effective deployment of funds
all of the above
Dividend decision is concerned with
only distribution of dividend to shareholders
how much to be retained in business
how much profit earned is distributed to shareholders and how much to be retained in the business
none of the above
Operating leverage =
(A) Contribution x Earnings before interest and tax
B) Contribution / Earnings before interest and tax
(C) Earnings before interest and tax / Contribution
(D) Earnings before interest and tax + Contribution
Break-even point is that level of sales revenue at which there is ________
(A) Profit
(B) Loss
(C) No profit no loss
(D) None of the above
FINANCING DECISIONS RELATE TO THE
DIVIDEND DECISIONS
ASSETS PROCUREMENT
RESREVE BUILDING
ACQUISITION OF CAPITAL
Customer Base is:
the group of customers that might be expected to purchase a business's goods and services.
a business's base product sold to customers
the group of customers most likely to cause a public relations issue for your marketing campaign
synonym for a market dimension or segment
Niche Market is:
a market that sells niches
a market started by an entrepreneur named Margaret Niche
a narrowly selected target market segment
a small marketplace with no competitors
Product Life Cycle is:
the stages a product passes through: beginning, middle, end
a product used by business to help manage their business
market research pertaining to a products popularity.
the stages a product passes through: introduction, growth, maturity, decline and extension.
What is the meaning of wants?
Something that you do not necessarily need it, but you still want it for luxurious lifestyle.
Something that is needed to live
Something that you cannot live without it
Something that you like.
What do you need to do within the process of evaluating financial statues?
Evaluate assets owned
Evaluate assets owned and liabilities borne
Check savings and investments owned
Check credit cards debts
The followings are elements of the financial management except
debts and savings
purification of property
savings, investmensts and protections
budget
Which of the following is the correct example of asset and liability?
Asset: Loan Liability: Credit card debts
Asset: Tax Liability: Real estate
Asset: Unit trust Liability: Instalment balance
Asset: Saving Liability: Property
Choose the correct way to evaluate financial position.
Credit statement
Balance sheet
Credit flow
Budget
How many percentage should a person save from their monthly income?
5%
8%
10%
20%
External sources of finance do not include:
Retained earnings
Overdraft
Leasing
Debentures
The process of calculating present value of future cash flows
compounding
discounting
both compounding and discounting
none of the above
Which of the following would be consistent with a more aggressive approach to financing working capital?
Financing short-term needs with short-term funds.
Financing permanent inventory buildup with long-term debt.
Financing seasonal needs with short-term funds.
Financing some long-term needs with short-term funds.
Permanent working capital
varies with seasonal needs.
includes fixed assets.
is the amount of current assets required to meet a firm's long-term minimum needs.
includes accounts payable.
Net working capital refers to
total assets minus fixed assets.
current assets minus current liabilities.
current assetsets minus inventories.
current assets
What is required for carrying out business activites?
Cash
Debt
Equity Shares
Money
Financial Planning helps in...
Managing Business
Managing Human Resources
Forecasting Business Situations
All of the above
Portion of Profit distributed to the shareholder is
Interest
Dividend
Tax
Earnings
