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Week 2: Intro to Financial Management

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Financial management is mainly concerned with

a)

All aspects of acquiring and utilizing financial resources for company's activities

b)

Arrangement of funds

c)

Efficient Management of every business

d)

Lowering Cost

2.

The first primary goal of financial management is

a)

to maximize shareholder's wealth

b)

to maximize profits

c)

to minimize risk

d)

to minimize return

3.

Ahmad works as a financial manager in RESTA Sdn Bhd. He is willing to gamble and invest $1,750,000 in a project that gives a return of 7% per year. Ahmad can be described as...

a)

A risk taker

b)

A risk avoider

c)

A risk indifferent

d)

A risk averse

4.

Which of the following is NOT considered as part of the financial manager's duties?

a)

To prepare marketing plan of the firm

b)

To assess the need for additional investment

c)

To determine additional financing required

d)

To monitor the financial performance of the company

5.

Three forms of business organizations are____.

a)

Sole- proprietor, partnership and joint venture.

b)

Sole- proprietor, partnership and Mergers

c)

Sole- proprietor, partnership and corporations

d)

Partnership, sole- proprietor, and non profit organizations

6.

Allen bought 100 of Apple's share with a price of $500, now Allen can be regarded as the ____

a)

owner of Apple

b)

customer of Apple

c)

supplier of Apple

d)

manager of Apple

7.

When Allen bought the apple's share, Allen was hoping to get____ at the end of the year.

a)

debt

b)

dividend

c)

expenses

d)

salary

8.

Which of the following is NOT a financial objectives of a company?

a)

Shareholder's wealth maximization

b)

Sales and Marketing

c)

Profit maximization

d)

Maximize earning per share

9.

Advantage of being in a sole- proprietor is___.

a)

borne losses by themselves

b)

can come work any time

c)

loss of time with family

d)

can be declared bankrupty

10.

disadvantage being in a corporation is_____

a)

can easily borrow money from banks

b)

can easily sell their share to other people

c)

owners private assets are protected

d)

need to pay income tax