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WorksheetsBrainy-wolves
Total questions: 30
Worksheet time: 11mins
Business finance is needed to
Establish a business
Run a business
Expand a business
All of the above
Which of the following is not a tangible asset?
Machinery
Trademarks
Factories
Offices
This decision relates to how the firm’s funds are invested in different assets,
Investment decision
Dividend decision
Financing decision
None of the above
Primary aim of financial management is to
Maximize shareholder’s wealth
Wealth maximization concept
Maximization of the market value of equity shares
All of the above
Financial Management aims at
Reducing the cost of funds procured
Keeping the risk under control
Achieving effective deployment of such funds
All of the above
Purchasing a new machine to replace an existing one is an example of
Financing decision
Dividend decision
Working capital decision
Capital budgeting decision
The size of assets, the profitability and competitiveness are all affected by
Working capital decision
Capital budgeting decision
Dividend decision
Financing
decision
These decisions affect the liquidity as well as profitability of a business
Capital budgeting decision
Financing decision
Working capital decision
Dividend decision
This decision is about the quantum of finance to be raised from various long-term sources.
Investment decision
Financing decision
Dividend decision
Capital budgeting decision
The inability of a business to meet its fixed financial obligations, like payment of interest, is known as
Business risk
Financial risk
Long-term risk
Market risk
Mr. Dev has two projects A and B in hand. The same amount of risk is involved in both the projects. If the rate of return of project A and B is 20% and 15% respectively, then under normal circumstance, which of the two projects is likely to be selected?
Project A
Project B
Both project A and project B
) None of the above
Which of the following sources of capital should not be selected by a business if its fixed cost is high?
Equity shares
Preference shares
Debentures
All of the above
When the stock market index is rising, a company may issue in order to meet its financial requirements.
Debentures
Bonds
Equity shares
None of the above
The overall financial risk depends upon the
Proportion of debt in the total capital
Proportion of equity in the total capital
Both of the above
None of the above
This decision determines the overall cost of capital and the monetary risk of the enterprise
Dividend decision
Capital budgeting decision
Investment decision
Financing decision
A company is likely to declare higher dividends if
Tax rates are high
Tax rates are relatively lower
Tax rate has no effect on dividend declaration
None of the above
When the stock market is bearish, a company may depend upon in order to raise the required funds.
Debentures
Equity shares
Preference shares
All of the above
Who is the current chairman of SEBI ?
Ajay Tyagi
G. N. Bajpai
Madhabi Puri Buch
U K Sinha
Name the financial decision which relates to disposal of profits.
Investment decision
Financing decision
Dividend decision
Capital budgeting decision
. Under which of the following circumstances a company is not likely to declare a higher dividend?
When the earnings of the company are high
When a company has a lucrative forthcoming business opportunity
When the cash flow position of the company is strong
None of the above
It is essentially the preparation of a financial blueprint of an organization’s future operations. Identify the related concept.
Financial management
Financial planning
Financial decision
Financial forecasting
A company must adhere to the provisions of the Companies Act while taking the dividend decision. Identify the related factor of dividend decision being mentioned in the above line.
Contractual constraints
Legal constraints
Access to capital market
Preferences of shareholders
Name the process that enables the management to foresee the fund requirements, both the quantum as well as the timing.
Financial planning
Capital budgeting decisions
Financial management
Dividend decision
The short-term financial plans are known as
Objectives
Budgets
Programs
Policies
The financial plans are drawn by taking into consideration
Growth prospects
Performance of the organization
Investments
All of the above
Which term refers to the extent to which the current assets of a business exceed the current liabilities of that business?
growth
liquidity
solvency
profitability
Which of the following is not an objective of financial planning?
Ensuring enough funds are available at the right time
Ensuring excess availability of funds at the right time
Ensuring smooth business operations
All of the above
A company issues shares directly to investors,usually an institution, rather than making a public offering.
What type of equity finance is this?
placement
new issue
rights issue
share purchase plan
Which ONE of the following relates to the ability of a business to pay its debts as they fall due?
growth
liquidity
efficiency
profitability
Which financial institution is most likely to issue debentures as a method of raising finance?
unit trust
investment bank
public company
superannuation fund
