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Financial Management Quiz 1

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

The key objective of financial management is ______.

a)

Profit Maximization

b)

Wealth Management

c)

Asset Maximization

d)

Sales Maxmization

2.

Maximisation of Shareholders Wealth is reflected in

a)

Sales Maximization

b)

Number of Shareholders

c)

Market Price of Equity Shares

d)

none of the above

3.

Which technique in financial management enable us to take investment/expansion decisions?

a)

Capital Structure

b)

Ratio Analysis

c)

Working Capital Management

d)

Capital Budgeting

4.

Which technique in financial management enable us to take procurement/sourcing decisions?

a)

Capital Structure

b)

Working Capital Management

c)

Ratio Analysis

d)

Capital Budgeting

5.

Which technique of financial management enables to manage day to day activities?

a)

Capital Structure

b)

Capital Budgeting

c)

Working Capital Management

d)

Ratio Analysis

6.
Which financial decision help a businessman in opening a new branch of its business. 
a)
Financing decision
b)
Dividend decision
c)
Investment decision
d)
None of the above
7.

The objective of wealth maximization takes into consideration:

a)

Risk related to uncertainty of returns

b)

Timing of expected returns

c)

Amount of returns expected

d)

All of the above

8.

A limited partnership provides limited liability to

a)

all general partners.

b)

only limited partners responsible for day to day management of the firm.

c)

only to limited partners who do not participate in the management of the business.

d)

all partners.

9.

Time value of money explains that:

a)

value of rupee received today is worth more than it is in the future

b)

value of rupee received today is worth less than it is in the future

c)

value of rupee received today and at some other time in future is equal

d)

None of them

10.

All financial decisions are taken considering

a)

Positive cashflows

b)

current year's profit

c)

NPV

d)

current year's revenue

11.

Permanent working capital is funded using

a)

Bank Overdraft

b)

Commercial Papers

c)

working capital loans

d)

long-term funds

12.

Net working capital is equal to

a)

total assets minus total liabilities.

b)

current assets minus total liabilities.

c)

total operating capital minus net income.

d)

current assets minus current liabilities.

13.

Current Ratio is computed as:

a)

Total Current Assets

b)

Product of Current Assets and Current Liabilities

c)

Current Assets/ Current Liabilities

d)

Quick Assets and Quick Liabilities

14.

Quick Assets do not include______.

a)

Debtors

b)

Cash

c)

Bills Receivable

d)

Inventory

15.

Financial Ratios are _______ measure.

a)

Absolute

b)

Relative