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WorksheetsScope & Objectives of FM
Total questions: 26
Worksheet time: 52mins
Which objective of financial management recognize risk-return relationships
Profit maximization
Wealth maximization
Both of (a) & (b)
None of above
In investment decision we decide
Where to invest
From where to borrow
How much dividend to be distributed
None of above
______ is concerned with the maximization of a firms earnings after taxes.
Shareholder wealth maximization
Profit maximization
Stakeholder maximization
EPS maximization
______ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
Financial Management
Profit Maximization
Agency Theory
Social Responsibility
In financing decision we decide
Where to invest
From where to borrow
How much dividend to be distributed
None of above
The long-run objective of financial management is to:
Maximize earnings per share
Maximize the value of the firms common stock
Maximize return on investment
Maximize market share
Which objective of financial management focus on short term
Profit maximization
Wealth maximization
Both of (a) & (b)
None of above
Does investment, financing, dividend decisions are inter-related to each other?
True
False
Partially true
Partially false
The most important goal of financial management is:
Profit maximisation
Matching income and expenditure
Using business assets effectively
Wealth maximisation
The ______ decision involves determining the appropriate make-up of the right-hand side of the balance sheet.
Asset management
Financing
Investment
Capital budgeting
Which of the following is not an objective of financial management?
Maximization of wealth of shareholders
Maximization of profits
Mobilization of funds at an acceptable cost
Ensuring discipline in the organization.
In dividend decision we need to decide
Where to invest
From where to borrow
How much dividend to be distributed
None of above
Which of the following is financial management decision
Investment decision
Financing decision
Dividend decision
All of above
Which objective of financial management recognize the effect of all future cash flows, dividend EPS etc.
Profit maximization
Wealth maximization
Both of (a) & (b)
None of above
Which of following position is goods for a business?
High risk
High return
Risk-return
No risk
Early in the history of finance, an important issue was:
Liquidity
Technology
Capital structure
Financing options
Focus of financial management is mainly concerned with the decision related to:
Financing
Investing
Dividend
All of above
Wealth maximisation approach is based on the concept of:
Cost benefit analysis
Cash flow approach
Time value of money
All of the above
Which of the following are microeconomic variables that help define and explain the discipline of finance?
Risk and return
Capital structure
Inflation
All of the above
Management of all matters related to an organisation’s finances is called:
Cash inflows and outflows
Allocation of resources
Financial management
Finance
The main objective of financial management is to:
Secure profitability
Maximize shareholder wealth
Enhancing the cost of debt
None of above
Which of the following is the disadvantage of having shareholders wealth maximisation goals?
Emphasizes the short-term gains
Ignores the timing of returns
Requires immediate resources
Offers no clear relationship between financial decisions and share price
Financial management is mainly concerned with the-
Acquiring and developing assets to forfeit its overall benefit
Acquiring, financing and managing assets to accomplish the overall goal of a business enterprise
Efficient management of the business
Sole objective of profit maximization
To achieve wealth maximization, the finance manager has to take careful decision in respect of:
Investment
Financing
Dividend
All of the above
The shareholder value maximisation model holds that the primary goal of the firm is to maximise its:
Accounting profit
Liquidity
Market value
Working capital
Which of the following need not be followed by the finance manager for measuring and maximising shareholder’s wealth?
Accounting profit analysis
Cash flow approach
Cost benefit analysis
Application of time value of money
