WorksheetsWelcome to FinMan
Total questions: 20
Worksheet time: 10mins
He or she is the one responsible in making investment, financial, and dividend policy-making decisions of a firm.
stockholder
finance manager
employee
creditor
It is one of the objectives of financial management.
maximize earnings
maximize cash flows
maximize the size of the firm
maximize firm value/stock price
The choice to issue shares of long-term bonds falls uncer
investment decision
dividend decision
financing decision
none of the above
The issuance of commercial paper is in the are of
investment decision
dividend decision
financing decision
none of the above
Which of the following is true about the accountants as compared with the finance managers?
They devote attention primarily to decision making through analysis of financial data.
They operate on an accrual basis.
They focus on the actual inflows and outflows of cash.
All of the above.
Which of the following is the best measure to ensure that management decisions are in the best interest of the stockholder?
fire managers who are inefficient
remove management's perquisites
tie management compensation to the level of dividend per share
tie management compensation to the performance of the company's common stock price
In planning and managing the requirements of a firm, the financial manager is concerned with
the mix and typeof assets, but not the type of financing utilized
the type of financing utilized, but not the mix and type of assets
the mix and type of assets, the type of financing utilized, and analysis in order to monitor the financial condition
the acquisition of fixed assets, allowing someone else to plan the level of current assets required, and the market value of the share
Marginal analysis states that financial decisions should be made and actions should be taken only when
benefits equal costs
added benefits exceed added costs
added benefits are greater than zero
marginal revenue equals marginal cost
By concentrating on cash flows within a firm, the financial manager should be able to
avoid insolvency
prepare tax returns
control the share price
maintain public relations
Finance is ________.
the art and science of managing money
the art of merchandising products and services
the system of verifying, analyzing, and recording business transactions
the science of the production, distribution, and consumption of goods and services
Which of the following is a duty of a financial manager in a business firm?
auditing financial records
raising financial resources
controlling the stock price
developing marketing plans
The primary goal of a financial manager is ________.
minimizing risk
maximizing profit
minimizing returns
maximizing wealth
Corporate owners receive return _________.
through interest earnings and earnings per share
through capital appreciation and retained earnings
by realizing gains through increases in share price and cash dividends
by realizing gains through increases in share price and interest earnings
Which of the following is not a principle of basic financial management?
Profit is king
Risk/return tradeoff
Efficient capital markets
Incremental cash flow counts
It is concerned with allocating, raising and controlling the funds of the firm.
finance
management accounting
financial management
budgeting
This refers to two or more persons binding themselves to contribute money, property or industry to a common fund, with the intention of dividing profits between or among themselves.
sole proprietorship
partnership
corporation
none of the above
It is a weakness of a sole proprietorship.
unlimited life
easy to form
limited liability
limited access to capital
Which of the following is not an essential characteristic of a corporation?
it is an artificial being
it is created by the operation of law
it enjoys the right of succession
it divides profits among the stockholders
Which of the following statements is an advantage of a sole proprietorship?
it cannot raise a large amount of capital
it has unlimited liability
the life of the business is dependent on the life of the owner
it is easy to make a decision
A business partnership is formed for the purpose of
contributing money, industry, property
contributing money and property
contributing money
profit
