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Worksheetsuntitled
Total questions: 25
Worksheet time: 13mins
Finance functions are
Planning for funds
Raising of funds
Allocation of funds
All of the above
Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
Consumer
Seller
Capital
Demand
External sources of funds are
(A) Funds from long term loans
(B) Sale of fixed assets
(C) Both (A) and (B)
(D) None of the above
Which one is source of raising of funds?
Equity Shares
Preference Shares
Debentures
Tax
Making an investment in long term assets is
(a)
The primary goal of financial management is
to maximize the return
to minimize the risk
to maximize wealth of owners
to maximize profit
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
Capital budgeting related to
long term assets
short term assets
long term assets and short term assets
fixed assets
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
Financial management aims at
ensuring availability of enough funds
reducing the cost of funds procured
effective deployment of funds
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 Planning helps in...
Managing Business
Managing Human Resources
Forecasting Business Situations
All of the above
Which of the following is considered the primary objective of financial management?
Profit maximization
Wealth maximization
Cost minimization
Sales maximization
Wealth maximization is generally preferred over profit maximization because it:
Focuses on long-term growth
Considers risk and timing of returns
Benefits all stakeholders
All of the above
Which of the following is NOT a function of financial management?
Investment decision
Financing decision
Dividend decision
Market analysis decision
What is the main goal of profit maximization?
Maximizing earnings per share
Increasing the market value of shares
Ensuring long-term sustainability
Reducing operational costs
In the context of financial management, what does the term 'agency problem' refer to?
Conflicts between shareholders and creditors
Conflicts between shareholders and managers
Conflicts between customers and suppliers
Conflicts between managers and employees
Which financial objective considers the interests of both shareholders and stakeholders?
Profit maximization
Wealth maximization
Sales maximization
Cost minimization
The process of determining which projects or investments a company should undertake is called:
Financing decision
Investment decision
Dividend decision
Risk management
Which of the following best describes the goal of financial management in terms of shareholder wealth?
Maximizing current dividends
Increasing the book value of equity
Maximizing the current value per share of existing stock
Reducing the company's debt
The decision regarding how much of the firm's earnings should be retained and how much should be paid out as dividends is called:
Investment decision
Financing decision
Dividend decision
Retention decision
Which of the following best defines financial management?
The management of the firm's assets
The management of the firm's liabilities
The management of the firm's financial resources to achieve its goals
The management of the firm's human resources
A financial manager's decision to pay dividends is related to which of the following objectives?
Profit maximization
Wealth maximization
Cost minimization
Revenue maximization
